MUNICIPAL CORPORATION OF GREATER MUMBAI · certificate of completion has been issued or a cause solely due to faulty municipal design of work. D. Corporation: The “Corporation”

MUNICIPAL CORPORATION OF

GREATER MUMBAI

Standard General Conditions of Contract for

Construction Works

2016

Ss Standard General Conditions of Contract Page 1

CONTENTS

SECTION A: GENERAL

1. Definations and Interpretations: Page No

a)Definitions 6

b) Heading and Marginal Notes 11

c) Singular and plural 11

d) Gender 11

2. Engineer and Engineers’ Representative:

a)Engineers Duty and Authority 12

b)Duties & Powers of the Engineers Representative 12

c)Engineer’s decision 13

d)Work to be in accordance with Contract 13

3. Assignment and sub-contracting:

a)Assignment 14

b)Sub-letting 14

c)Nominated sub-contractor 14

d) Joint Venture 16

4.Contract Documents:

a)Language/s 20

b)Contract Documents 20

c)Drawings: Custody of drawings 20

d)Engineer to have power to issue further drawings

or instructions 22

e)Discrepancies in drawings or specifications 22

f)Official Secrecy 23

g)Subsequent legislation 23


h)Contract Execution 24

i) No claim to any payment or compensation or alteration 24

in or restriction of work.

j) The limit for unseen claims 25

5.General Obligations ofContractor

a) Inspection of site and sufficiency of tender. 26

b)Temporary Office for the Engineer

(Work costing upto R.s 50lakhs) 27

c) Temporary Office for the Engineer

(Work costing upto R.s 50lakhs) 27

d)Contractor’s office near works 27

e)Works to be carried out 28

f) Security Deposit 28

g) Levels 33

h)Use of Municipal Land 33

i)Water supply for Municipal Work 34

j) Pumping out Water 34

k) Contractors Staff 35

l)Contractor’s Supervision 35

m)Setting out the Work 36

n)Precautions for works in thorough-fares 36

o) Maintenance of underground utility services 37

p) Fencing, watching and lighting 38

q) Treasure Trove Fossils etc 38

r) Protection of trees 38

s)Contractor to preserve peace 38

t) Sanitation 39


u)Safety Provisions 39

v) Provision of first aid 39

w)Apprentices 39

x)Storage of Explosives 40

y)Contractor’s other liabilities & Insurance 40

z)Changes in constitution 43

aa) Facilities to the other contractors 43

ab)Patent Right and Royalties 43

ac)Production of Vouchers 43

ad)Employment of local personnel 43

ae) Personnel. 43

af) Contractor to keep site clear.. 44

ag) Clearance of site on completion 44

6.Labour

a)Employment of Labour 45

b)Compliance with Labour Regulation 46

c)Regulation Employment Welfare 49

7.Materials, Plant and Workmanship

a)Plant and equipment 51

b)Use of Specification I.S.I 51

c) Work to be open to Inspection and Contractor or

Responsible agent to be presesnt: 51

d)Uncovering and making good 53

e)Materials 54

f)Stock of Materials required 55

g)Photographs of the works 55


8.Suspension, commencement and delays:

a) Suspension of work 56

b)Rate of progress 56

c)Restriction on Working Hours 56

d)Commencement Time and Extension for Delay 57

e) Compensation for delay 59

f) Action And Compensation Payable In Case Of

Bad Work And Not Done As Per Specifications 59

g)Completion Certificate 60

h)Works where PERT chart’s is required along with Tender 62

i) Network Schedule & Monthly progress Reports 62

j) Management Meetings 63

k) Contractor remain liable to pay compensation 63

l) Extension of Time in Contracts 63

9.Defects Liability

a)Defects liability period 65

b)Liability for defects or imperfection and rectification thereof 67

c) Liability for damages and risks 68

d)Contractor to Search 70

10 Variations

a)Rate of Excess 71

b)Reimbursement refund on variation of price of labour and materials 73

11. Measurements

a)Records and measurement 77

b)Method of Measurement 77


12.Payments, Tax and Claims

a)Provisional Sum and Advances 78

b)Interim Payment 79

c) Payment on intermediate certificate to be regarded as advances 79

d) No interest for delayed payments due to disputes, etc. 80

e)Receipts to be signed firm’s name by any one of the partners 80

f)Overpayment and underpayment 80

g)Payment of final bill 81

h)Income-Tax 82

i)Currency of payment 83

j)Taxation payments of Bills and other claims 83

k) Submissions of final completion drawings 84

13.Settlement of Disputes

a)Termination of contract for death 85

b)Urgent Works 85

c)Foreclosure of contractor in full or in part 85

d)Settlement of Disputes 86

e)Arbitration and Jurisdiction 86

f) Details to be Confidential. 87

g)Cancellation of contract in full or in part. 87

h) Frauds and Corrupt Practices 89

14. Notices

a) Instructions and notices 90

b) Notices to local bodies 90

15. Banning/De-Registration of Agencies of Construction work 91

SECTION B: Safety Health & Environment 98

ANNEXURE-I 104


1.Definitions and Interpretations

1.a)Definitions:

• The “Employer” shall mean the Municipal Corporation for Greater Mumbai / Municipal

Commissioner for Greater Mumbai, for the time being holding the said office and also his

successors and shall also include all “Additional Municipal Commissioners, Director

(Engineering Services & Projects)” and the Deputy Municipal Commissioner, to whom the

powers of Municipal Commissioner, have been deputed under Section 56 and 56B of the

Mumbai Municipal Corporation Act.

• Contract : The “Contract” shall mean the tender and acceptance thereof and the formal

agreement if any, executed between the Contractor, Commissioner and the Corporation

together with the documents referred to therein including these conditions and appendices

and any special conditions, the specifications, designs, drawings, price schedules, bills of

quantities and schedule of rates. All these documents taken together shall be deemed to

form one Contract and shall be complementary to one another.

• Contractor: The “Contractor” shall mean the individual or firm or company whether

incorporated or not, whose tender has been accepted by the employer and the legal

successor of the individual or firm or company, but not (except with the consent of the

Employer) any assignee of such person.

• Bidder: The Bidder shall mean a person or corporate body who has desired to submit Bid

to carry out the Works, including routine maintenance till the tender process is concluded.

• Arbitrator: “Arbitrator” means the person or persons appointed by agreement between the

Employer and the Contractor to make a decision on or to settle any dispute or difference

between the Employer and the Contractor referred to him or her by the parties pursuant to

General Conditions of Contract amended up to date.

• Contract Sum: “Contract Sum” means the sum named in the letter of acceptance including

Physical contingencies subject to such addition thereto or deduction there-from as may be

made under the provisions hereinafter contained.

Note : The contract sum shall include the following –

• In the case of percentage rate contracts the estimated value of works as mentioned in the

tender adjusted by the Contractor’s percentage.


• In the case of item rate contracts, the cost of the work arrived at after finalisation of the

quantities shown in schedule of items / quantities by the item rates quoted by the tenderers

for various items and summation of the extended cost of each item.

• In case of lumpsum contract, the sum for which tender is accepted.

• Special discount / rebate / trade discount offered by the tenderer if any and accepted by the

Corporation.

• Additions or deletions that are accepted after opening of the tenders.

• Contract Cost: “Contract Cost” means the Contract Sum plus Price Variation. This cost

shall be included in the letter of acceptance.

A. Engineer: The “Engineer” shall mean the City Engineer / the Hydraulic Engineer / the Chief

Engineer / the Special Engineer, appointed for the time being or any other officer or officers

of the Municipal Corporation who may be authorized by the commissioner to carry out the

functions of the City Engineer / the Hydraulic Engineer / the Chief Engineer / the Special

Engineer or any other competent person appointed by the employer and notified in writing to

the Contractor to act in replacement of the Engineer from time to time.

B. Engineer’s Representative: “Engineer’s Representative” shall mean the Assistant

Engineer, Sub. Engineer/Jr. Engineer in direct charge of the works and shall include Sub

Eng./ Jr. Eng of Civil section/ Mechanical section/ Electrical section appointed by MCGM.

from time to time by the Sub Clause 2a.

C. Excepted Risks: “Excepted risks” are risks due to riots (otherwise than among Contractors’

employees) and civil commotion (in so far as both these are uninsurable), war (whether

declared or not), invasion, act of foreign enemies, hostilities, civil war, rebellion, revolution,

insurrection, military or usurped power, any act of government, damage from aircraft, acts of

god, such as earthquake, lightning and unprecedented floods and other causes over which

the Contractor has no control and accepted as such by the Commissioner or causes solely

due to use or occupation by the Municipal Corporation of the works in respect of which a

certificate of completion has been issued or a cause solely due to faulty municipal design of

work.

D. Corporation: The “Corporation” or the “Municipal Corporation” shall mean the Municipal

Corporation of Greater Mumbai, constituted under the M.M.C. Act 1888 as amended up to

date.


E. Annexure: The “Annexure” referred to in these conditions shall means the relevant

annexure appended to the tender papers issued by the Municipal Corporation.

F. Site: The “Site” shall mean the land and other places including water bodies more

specifically mentioned in the special conditions of the tender, on, under in or through which

the permanent works or temporary works are to be executed and any other lands and places

provided by the Municipal Corporation for working space or any other purpose as may be

specifically designated in the contract as forming part of the site.

G. Urgent Works: “Urgent works” shall mean any urgent measures which in the opinion of the

Engineer become necessary during the progress of the work to obviate any risk of accident

or failure or which become necessary for security.

H. Works: The “Works” shall mean the Permanent Works and the Temporary Works or either

of them as appropriate to be executed in accordance with the contract or part(s) thereof, as

the case may be and shall include all extra or additional, altered or substituted works as

required for performance of the contract as found necessary as per suggestion of the

Engineer.

I. Temporary Works: “Temporary Works” shall mean all Temporary Works of every kind

required in or about execution, completion or maintenance of the work also Temporary

Works are works designed, constructed, installed, and removed by the Contractor that are

needed for construction or installation of the Works.

J. Permanent Works : “Permanent Works” means the permanent works to be executed

(Including Plant) and installation of machineries in accordance with the Contract at specified

required site and location.

K. Contractor’s Equipment: Contractor’s Equipment means all appliances and things of

whatsoever nature required for the execution and completions of the Works and the

remedying of any defects therein, but does not include plant material or other things

intended to form or forming part of the Permanent Works.

L. Drawings: Drawings means all the drawings, calculations and technical information of a like

nature provided by the Engineer to the Contractor under the Contract and all drawings,

calculations, samples, patterns, models, operation & maintenance manual and other

technical information of like nature submitted by the Contractor and approved by the

Engineer.


M. Approved: “Approved” shall mean approved in writing including subsequent confirmation of

previous verbal approval and “approval” shall mean approval in writing including as

aforesaid.

N. Specification: “Specification” means the specification referred to in the tender and any

modification thereof or addition or deduction thereto as may from time to time be furnished

or approved in writing by the Engineer.

O. Tender: “Tender” means the Contractor’s priced offer to the Employer for the execution and

completion of the Works and the remedying of any defects therein in accordance with the

provision of the Contract, as accepted by the Letter of Acceptance.

P. Letter of Acceptance: “Letter of Acceptance” means the formal acceptance by the

Employer of the tender, for the particular specified work or job.

Q. Commencement Date: “Commencement Date” means the date upon which the Contractor

receives the notice to commence, issued by the Engineer pursuant to Clause 8d.

R. Time for Completion: “Time for Completion” means the time for completing the execution

of and passing the Tests on Completion of the Works or any Section or part thereof as

stated in the Contract (or as extended under Section8) calculated from the Commencement

Date.

S. Taking over Certificate: “Certificate of Taking-Over/ Take-over Certificate” shall mean

the certificate issued by the Employer after completion of Works in all respects.

T. Defect Liability Period: “Defect Liability Period” means the period of validity of the

warranties given by the Contractor commencing from the date of ‘certificate of taking

over’ of the Works or a part thereof, during which the Contractor is responsible for defects

with respect to the Works (or the relevant part thereof).

U. Plant: “Plant” means machinery, apparatus, and the like intended to form or forming part of

the all types of permanent works.

V. Section: “Section” means a part of work specially identified in the contract as a section.

W. Cost: “Cost” means all expenditure properly incurred or to be incurred whether on or off the

site including overheads and other charges properly allocable thereto but does not include

any allowance for profit.

X. Day: “Day” means Calendar day


Y. Month: “Month” means Calendar month of the Gregorian calendar.

Z. GCC: GCC means General Conditions of Contract.

AA. Foreign Currency: “Foreign Currency” means currency of a country other than that in

which the works are to be located, approved by Govt of INDIA/Reserve Bank of INDIA.

BB. Writing: Writing means any hand written, type-written, or printed communication including

telex and facsimile transmission ,electronic and digital media.

CC. Country: Country means the country in which the Site is located

DD. Variation: Variation means a change to the:-

i) Specification and /or Drawings (if any) which is instructed by the Employer.

ii) Scope in the Contract which is instructed by the Employer.

iii) Price in the Contract which is instructed by the Employer.

EE. Force Majeure: Force Majeure means an exceptional event or circumstance: which is

beyond a Party's control; which such Party could not reasonably have provided against

before entering into the Contract; which, having arisen, such Party could not reasonably

have avoided or overcome; and, which is not substantially attributable to the other Party.

FF. Law: Law means law that is in force in India

GG. Performance Security/ Performance Guarantewe: It is the security in the form of a

deposit to be provided by the contractor to the Engineer for his proper performance of the

contract within the specified period.

HH. Communication: Wherever provision is made for the giving or issue of any notice,

instruction, or other communication by any person, unless otherwise specified such

communication shall be written in the English language and shall not be unreasonably

withheld or delayed.

OO)Tests on Compliance: “Tests on Compliance” means the tests specified in the Contract or

otherwise agreed by the Engineer and the Contractor which are to be made by the

Contractor before the works or any section or part thereof are taken over by the employer.

PP)Extra items: ‘Extra’ means additional or substituted items of work activity not included in the

‘Bill of Quantities and Rates’, however such items are in the prevailing ‘Unified Schedule of

Rates’ for MCGM.


QQ) Excess/Savings: Increase or decrease in “Bill of Quantities” of the bidding documents

shall be termed as “Excess” or “Savings” correspondingly

RR) Extra item: This shall mean additional or substituted items of work activity not included in

the “Bill of Quantities and Rates”, however such item of work are in the prevailing “Unified

Schedule of Rates” of MCGM.

SS) FAIR item: This shall mean additional or substituted items of work activity not included in

the “Bill of Quantities and Rates”, and even not existing in the “Unified Schedule of Rates”

of MCGM at the time of tender.

TT) Unforeseen works: Unforeseen works shall mean the works of bursting / leakages of water

pipelines, settlement of sewage lines / manholes, settlement of storm water drains in city

areas

UU) Subcontractor: Any person named in the contract as Subcontractor for part of the Works

or any person to whom a part of the Works has been subcontracted with the consent of the

Engineer and the legal successors in the title to such person, but not any assignee of such

person.

VV) Bill of Quantities: It means the priced and completed bill of quantities forming part of the

tender.

1.b) Headings & Marginal Notes to Conditions:

Headings and marginal notes to these conditions shall not be deemed to form part thereof or be

taken into consideration in the interpretation or construction thereof or of the contract.

1.c) Singular & Plural :

Where the context so require, words importing the singular shall also mean the plural and vice

versa.

1.d) Gender :

Words importing in the masculine gender shall also include the feminine gender.

2.Engineer and Engineer’s Representative


2.a) Engineers Duty & Authority:

i. The Engineer shall carry out the Duties specified in the Contract

ii. The Engineer may exercise the authority specified in or necessarily to be implied from the

Contract, provided, however, that if the Engineer is required under the terms of the

appointment by the Employer, to obtain the specific approval from the Employer before

exercising any such authority, particulars of such requirements shall be set out in Special

conditions of Contract. Provided further that any requisite approval shall be deemed to have

been given by the Employer for any such authority exercised by the Engineer.

iii. Except as expressly stated in the Contract, the Engineer shall have no authority to

relieve the Contractor of any of his obligations under the Contract.

iv. The Engineer may from time to time in writing delegate to the Engineer’s representative

any of the powers or authorities vested in the Engineer and shall furnish to the Contractor a

copy of all such written delegations of powers and authorities. Any written instruction or

approvals given by the Engineer’s Representative to the contractor with the terms of such

delegation (but not otherwise) shall be binding on the Contractor as if given by the Engineer.

v. The Engineers representative shall be appointed by and be responsible to the Engineer and

shall carry out the duties and exercise such authority as may be designated to him by the

Engineer under the clause 2.a.(iv).

vi. The Engineer may from time to time delegate to the Engineers representative. The

duties and authorities vested in the Engineer and he may at any time revoke such delegation.

Any such delegation or revocation shall be in writing and shall not take effect until a copy

thereof has been delivered to the Employer and Contractor.

2.b) Duties & Powers of the Engineers Representative:

i. The duties of the representative of the Engineer are to check, watch and supervise the

work and to test and examine any material to be used or workmanship employed in connection

with the works. He shall have no authority to relieve the Contractor of any of his duties or

obligations under the contract nor to except as expressly provided here under or elsewhere in

the contract to order any work involving delay or any extra payment by the Municipal

Corporation nor to make any variation of or in the works without written approval, consent or

orders/direction of Engineer.


ii. Communications given by the Engineers Representative to the Contractor in accordance

with any delegations shall have the same effect and shall be binding on the contractor as

though it had been given by the Engineer, Provided that :

a. Failure of the representative of the Engineer to disapprove any work or material shall not

prejudice the power of the Engineer thereafter to disapprove such work or material and to

order the pulling down, removal or breaking up thereof.

b. If the Contractor questions any communication of the Engineers Representative he may

refer to the matter to the Engineer who shall confirm, revise or vary the contents of such

communications.

2. c) Engineer’s Decision:

The whole of the work shall be under the direction of the Engineer, whose decision shall be

final, conclusive and binding on all parties to the contract, on all questions relating to the

construction and meaning of plans, working drawings, sections, and specification connected

with the work.

2.d) Work to be in accordance with Contract:

Unless it is legally or physically impossible, the Contractor shall execute and complete the

Works and remedy any defects therein in strict accordance with the Contract to the satisfaction

of the Engineer.

3. Assignment and Sub-Contracting

3.a) Assignment:


The Contractor shall not assign transfer or attempt to assign, transfer the Contract or any part

thereof, or any benefit or interest therein or there under otherwise than by a charge in favor of

the Contractor’s bankers of any Money due or to become due under this contract, without the

prior written approval of the Commissioner.

3.b) Sub-letting:

• Unless specifically mentioned in the contract subletting will not be allowed. Subletting,

where otherwise provided by the contract shall not be more than 25% of the contract

price.

• Subletting of contract will be allowed only after appointment of contractor and before

starting the execution of the work.

• The permitted subletting of work by the Contractor shall not establish any contractual

relationship between the sub-contractor and the MCGM and shall not relieve the

Contractor of any responsibility under the Contract.

3.c) Nominated Sub-Contractors:

All specialist, merchants, tradesmen and others executing any work or supplying any goods,

materials, plant or services for which provisional, sums are included in the contract, who may

have been or be nominated or selected by the employer or the engineer, and all persons to

whom by virtue of the provision of the contract the contractor is required to subcontract shall, in

the execution of such work or the supply of such goods, materials, plant or services be deemed

to be subcontractor to the contractor and are referred to in this contract as “nominated

Subcontractors”.

The Contractor shall not be required by the Employer or the engineer, or be deemed to be

under any obligation, to employ any nominated Subcontractor against whom the Contractor may

raise reasonable objection, or who declines to enter into a subcontract with contractor

containing provision:

i. That in respect of the work, goods, materials, Plant or services the subject of subcontract, the

nominated Subcontractor will undertake towards the Contractor such obligation and liabilities

as will enable the contractor to discharge his own obligation and liabilities towards the

Employer under the terms of the contract and will save harmless and indemnify the

Contractor from and against the same and form all claims ,proceeding damages, costs,

charges, and expenses whatsoever arising out of or in connection there with or arising out of

or in connection with any failure to perform such obligations or to fulfill such liabilities and (ii)

ii. That the nominated subcontractor will save harmless and indemnify the contractor from and

against any negligence by the nominated subcontractor, his agents, workmen and servants

and from and against any misuse by him or them of any Contractor's Equipment or

Temporary Works provided by the Contractor for the purposes of the Contract and from all

claims as aforesaid.

• Design requirements to be Expressly stated:

If in connection with any Provisional Sum the services to be provided include any, matter

design or specification of any part of the Permanent Works or of any plant to be incorporated


therein, such requirement shall be expressly stated in the Contract and shall be included in any

nominated Subcontract. The nominated Subcontract shall specify the nominated Subcontractor

providing such services will save harmless and indemnify the contractor from and against the

same and from all claims, proceedings, damages, costs, charges and expenses whatsoever

arising out of or in connection with any failure to perform such obligations or to fulfill such

liabilities.

B) Payments to Nominated Sub-Contractors;

For all work executed or goods, materials plant or services supplied by any nominated

Subcontractor, The Contractor shall be entitled to:

a. The actual price paid or due to be paid by the contractor, on the instruction or engineer,

and in accordance with the subcontract.

b. In respect of labor supplied by the Contractor, the sum, if any, entered in the Bill of

Quantities or, if instructed by the Engineer pursuant to clause on Use of Provisional

Sums as may be determined in accordance with Clause of Valuation of variation.

In respect of all other charges and profit, a sum being a percentage rate of the actual paid or

due to be paid as per clause 10 (b) calculated, where provision has been made in the bill of

Quantities for a rate to be set against the relevant Provisional Sum, at the rate inserted by the

contractor against that item or, where no such provision has been made, at the rate inserted by

Contractor in the Appendix to Tender and repeated where provision for such is made special

item provide in the Bill of Quantities for such purpose.

C) Certification of payments to nominated sub-contractors:

Before issuing any certificate under Section 12 which includes any payment in respect of work

done or goods, material, plant or services supplied by any nominated sub-contractor, the

Engineer shall be entitled to demand from the Contractor reasonable proof that all payments,

less retentions, Included in previous certificates in respect of the work or good materials, Plant

or services of such nominated Sub-Contractor have been paid or discharged by the Contractor.

If the Contractor fails to supply such proof then, unless the Contractor:

a) satisfies the Engineer in writing that he has reasonable cause for withholding or refuse to

make such payments and

b) Produces to the Engineer reasonable proof that he has so informed such nominated

Subcontractor in writing,

The Employer shall be entitled to pay to such nominated Subcontractor direct, upon certificate

of Engineer, all payments, less retentions, provided for in the nominated Subcontract, which the

Contractor has failed to make to such nominated Subcontractor and to deduct by way of set-off

the amount so paid by the Employer from any sums due or to become due from the Employer to

the Contractor.

Provided that, where the Engineer has certified and the Employer has paid direct as aforesaid

,the Engineer shall, in issuing any further certificate in favor of the Contractor, deduct from the

amount thereof the amount so paid, direct as aforesaid, but shall not withhold or delay issue of

the certificate itself when due to be issued under the terms of contract


3.d) JOINT VENTURE (JV) FIRMS

1. Joint Venture should be allowed only when the number of identifiable different

works is more than one and/or the estimated cost of tender is more than Rs.100

Crores. JV shall also be allowed for complex technical work below Rs.100 Crores

with the approval of concerned AMC

2. Separate identity/name shall be given to the Joint Venture firm.

3. Number of members in a JV firm shall not be more than three in normal

circumstances, if the work involves only one discipline (say Civil or Electrical). If

number of members in JV is required to be more than three, then approval of

concerned AMC needs to be sought.

4. A member of JV firm shall not be permitted to participate either in individual

capacity or as a member of another JV firm in the same tender.

5. The tender form shall be purchased and submitted in the 'name of the JV firm or

any constituent member of the JV.

6. Normally EMD shall be submitted only in the name of the JV and not in the name

of constituent member. However, EMD in the name of lead partner can be

accepted subject to submission of specific request letter from lead partner stating

the reasons for not submitting the EMD in the name of JV and giving written

confirmation from the JV partners to the effect that the EMD submitted by the

lead partner may be deemed as EMD submitted by JV firm.

7. One of the members of the JV firm shall be the lead member of the JV firm who

shall have a majority (at least 51%) share of interest in the JV firm. The other

members shall have a share of not less than 20% each in case of JV firms with up

to three members and not less than 10% each in case of JV firms with more than

three members. In case of JV firm with foreign member(s), the lead member has

to be an Indian firm with a minimum share of 51%.

8. A copy of Letter of Intent or Memorandum of Understanding (MoU) executed by

the JV members shall be submitted by the JV firm along with the tender. The

complete details of the members of the JV firm, their share and responsibility in

the JV firm etc. particularly with reference to financial technical and other

obligation shall be furnished in the agreement.

9. Once the tender is submitted, the agreement shall not be

modified/altered/terminated during the validity of the tender. In case the tenderer

fails to observe/comply with this stipulation, the full Earnest Money Deposit

(EMD) shall be forfeited. In case of successful tenderer, the validity of this

agreement shall be extended till the currency of the contract expires.


10. Approval for change of constitution of JV firm shall be at the sole discretion of

the MCGM. The constitution of the JV firm shall not be allowed to be modified

after submission of the tender bid by the JV firm except when modification

becomes inevitable due to succession laws etc. and in any case the minimum

eligibility criteria should not get vitiated. In any case the Lead Member should

continue to be the Lead Member of the JV firm. Failure to observe this

requirement would render the offer invalid.

11. Similarly, after the contract is awarded, the constitution of JV firm shall not be

allowed to be altered during the currency of contract except when modification

become inevitable due to succession laws etc. and in any case the minimum

eligibility criteria should not get vitiated. Failure to observe this stipulation shall

be deemed to be breach of contract with all consequential penal action as per

contract condition.

12. On award of contract to a JV firm, a single Performance Guarantee shall be

required to be submitted by the JV firm as per tender conditions. All the

Guarantees like Performance Guarantee, Bank Guarantee for Mobilization

advance, machinery Advance etc. shall be accepted only in the name of the JV

firm and no splitting of guarantees amongst the members of the JV firm shall be

permitted.

13. On issue of LOA, an agreement among the members of the JV firm (to whom the

work has been awarded) has to be executed and got registered before the Registrar

of the Companies under Companies Act or before the Registrar / Sub-Registrar

under the Registration Act, 1908. This agreement shall be submitted by the JV

firm to the MCGM before signing the contract agreement for the work. (This

agreement format should invariably be part of the tender condition). In case the

tenderer fails to observe/comply with this stipulation, the full Earnest Money

Deposit (EMD) shall be forfeited and other penal actions due shall be taken

against partners of the JV and the JV. This joint venture agreement shall have,

inter-alia, following clauses:-

13.1 Joint and several liability - The members of the JV firm to which the contract

is awarded, shall be jointly and severally liable to the Employer (MCGM) for

execution of the project in accordance with General and Special conditions of the

contract. The JV members shall also be liable jointly and severally for the loss,

damages caused to the MCGM during the course of execution of the contract or

due to no execution of the contract or part thereof.


13.2 Duration of the Joint Venture Agreement -It shall be valid during the entire

period of the contract including the period of extension if any and the

maintenance period after the work is completed.

13.3 Governing Laws - The Joint Venture Agreement shall in all respect be

governed by and interpreted in accordance with Indian Laws.

13.4 Authorized Member -Joint Venture members shall authorize one of the

members on behalf of the Joint Venture firm to deal with the tender, sign the

agreement or enter into contract in respect of the said tender, to receive payment,

to witness joint measurement of work done, to sign measurement books and

similar such action in respect of the said tender/contract. All

notices/correspondences with respect to the contract would be sent only to this

authorized member of the JV firm.

No member of the Joint Venture firm shall have the right to assign or transfer the

interest right or liability in the contract without the written consent of the other

members and that of the employer in respect of the said tender/contract.

14. Documents to be enclosed by the JV firm along with the tender:

14.1 In case one or more of the members of the JV firm is/are partnership firm(s),

following documents shall be submitted:

14.1.1 Notary certified copy of the Partnership Deed,

14.1.2 Consent of all the partners to enter into the Joint Venture Agreement on a

stamp paper of appropriate value (in original).

14.1.3 Power of Attorney (duly registered as per prevailing law) in favor of one of the

partners to sign the MOU and JV Agreement on behalf of the partners and

create liability against the firm.

14.2 In case one or more members is/are Proprietary Firm or HUF, the following

documents shall be enclosed:

14.2.1 Affidavit on Stamp Paper of appropriate value declaring that his Concern is a

Proprietary Concern and he is sole proprietor of the Concern OR he is in

position of "KARTA" of Hindu Undivided Family and he has the authority,

power and consent given by other partners to act on behalf of HUF.

14.3 In case one or more members is/are limited companies, the following documents

shall be submitted:

14.3.1 Notary certified copy of resolutions of the Directors of the Company,

permitting the company to enter into a JV agreement, authorizing MD or one

of the Directors or Managers of the Company to sign MOU, JV Agreement,

such other documents required to be signed on behalf of the Company and


enter into liability against the company and/or do any other act on behalf of the

company.

14.3.2 Copy of Memorandum and articles of Association of the Company.

14.3.3 Power of Attorney (duly registered as per prevailing law) by the Company

authorizing the person to do/act mentioned in the para (a) above.

14.4 All the members of the JV shall certify that they have not been black listed or

debarred by MCGM from participation in tenders/contract in the past either in

their individual capacity or the JV firm or partnership firm in which they were

members / partners.

14.5 Credentials & Qualifying criteria: Technical and financial eligibility of the JV

firm shall be adjudged based on satisfactory fulfilment of the following criteria:

Technical eligibility criteria: In case of Work involving single discipline, the

Lead member of the JV firm shall meet at least 35% requirement of technical

capacity as stipulated in tender document.

OR

In case of composite works (e.g. works involving more than one distinct

component such as Civil Engineering works, M&E works, Electrical works, etc.

and in the case of major bridges, substructure and superstructure etc.), atleast one

member should have satisfactorily completed 35% of the value of any one

component of the project work so as to cover all the components of project work

or any member having satisfactorily completed 35% of the value of work of each

component during last seven financial years.

In such cases, what constitutes a component in a composite work shall be

clearly defined as part of the tender condition without any ambiguity.

Financial eligibility criteria: The contractual payments received by the JV firm

or the arithmetic sum of contractual payments received by all the members of JV

firm in any one of the previous three financial years and shall be at least 100% of

the estimated value of the work as mentioned in the tender.

4. Contract Documents

4.a) Language/s:

The language of the Contract shall be English and all correspondence, drawings etc. shall

conform to the English language.

4.b) Contract Documents:


The documents forming the contract are to be taken as mutually explanatory of one another.

Unless otherwise provided in the contract, the priority of the documents forming the contract

shall be, as follows:

1) Contract Agreement (if completed)

2) The letter of Acceptance

3) The Bid:

4) Addendum to Bid; if any

5) Conditions of contract-Part-II: Conditions of Particular Application.

6) Conditions of Contract-Part I :General Condition

7) The priced bill of Quantities:

8) The Specification:

9) Detailed Engineering Drawings

10) GCC

11) All correspondence documents between bidder and MCGM.

4.c)Custody of Drawings:

i. Custody of drawings: The Drawings shall remain in the sole custody of Engineer, but

two copies thereof, shall be furnished to the Contractor free of charge. The Contractor

shall provide and made at his own expense any further copies required by himand the

Engineer for the bonafide cause. At the completion of the Contract, the Contractor shall

return to the Engineer all drawings provided under the Contract.

ii. One copy of drawing to be kept on site: One copy of the drawings, furnished to the

Contractors as aforesaid, shall be kept by the Contractor on the site and the same shall

at all reasonable times be available for inspection and use by the Engineer and the

Engineer’s Representative and by any other persons authorized by the Engineer in

writing.

iii. Disruption of Progress: The Contractor shall give written notice to the Engineer

whenever planning or progress of the works is likely to be delayed or disrupted unless

any further drawings or order, including a direction, instruction or approval, is issued by

the Engineer within reasonable time. The notice shall include details of the drawing or

order required and of why and by when it is required and of any delay or disruption likely

to be suffered if it is late.


iv. Delays and Cost of delay of drawings: If by reason of any failure or inability of the

Engineer to issue within a time reasonable in all the circumstances any drawing or order

requested by the Contractor in accordance with the sub-clause(iii) of this condition the

Contractor suffers delay and / or incurs cost then the Engineer shall take such delay into

account in determining any extension of time to which the Contractor is entitled under

sub-clause (d) of Clause 8 hereof and the Contractor shall be paid the amount of such

cost as shall be reasonable.

v. Failure to submit Drawings by Contractor: If the failure or the inability of the Engineer

to issue any drawings or instructions is caused in whole or in part by the failure of the

Contractor to submit specification or drawings or other documents which is required to

submit under the contract, the Engineer shall take such failure by the contractor into

account when making his determination in accordance with condition 4c(iv)hereof.

vi. Copyright: The copyright of all drawings and other documents provided by the

Contractor under the Contract shall remain vested in the Contractor or his sub-

contractors as the case may be the Employer shall have a license to use such drawings

and other documents in connection with the design, construction, operation and

maintenance of the Works. At any time the Employer shall have further license without

additional payment to the Contractor to use any such drawings or documents for the

purpose of making any improvement of the works or enlargement or duplication of any

part thereof, provided that such improvement, enlargement or duplication by itself or in

conjunction with any other improvements, enlargements or duplications already made in

accordance with the further license does not result in the duplication of the whole of the

works.

4.d) Engineer to have power to issue further drawings or instructions:

The Engineer shall have the power and authority from time to time and at all times to make and

issue such further drawings and to give such further instructions and directions as may appear

to him necessary or proper for the guidance of the contractor and the good and sufficient

execution of the works according to terms of the specifications and Contractor shall receive,

execute, obey and be bound by the same, according to the true intent and meaning thereof, as


fully and effectually as though the same had accompanied or had been mentioned or referred to

in the specification, and the Engineer may also alter or vary the levels or position of nature of

works contemplated by the specifications, or may order any of the works contemplated thereby

to be omitted, with or without the substitution of any other works in lieu thereof, or may order

any work or any portion of work executed or partially executed, to be removed, changed or

altered, added if needful, may order that other works shall be substituted instead thereof and

difference of expense occasioned by any such diminution or alteration so ordered and directed

shall be added to or deducted from the amount of this Contract, as provided under condition

no.10(a) hereinafter.

No work which radically changes the original nature of the Contract shall be ordered by the

Engineer and in the event of any deviation being ordered which in the opinion of the Contractor

changes the original nature of Contract he shall nevertheless carry it out and disagreement as

to the nature of the work and the rate to be paid therefore shall be resolved in accordance with

condition no.13d.

The time for completion of the Works, shall be in even of any deviations resulting in additional

cost over the contract price being ordered, be extended or reduced reasonably by the Engineer.

The Engineer’s decision in this case shall be final.

4.e) Discrepancies in drawings or specifications:

The drawings and specifications are to be considered as mutually explanatory of each other,

detailed drawings being followed in preference to small scale drawings and figured dimensions

in preference to scale and special conditions in preference to general conditions. The

preference of documents will be as per condition 4(b). Should any discrepancies, however,

appear, or should any misunderstanding arise as to the meaning and import of the said

specifications or drawings, or as to the dimensions or the quality of the materials or the due and

proper execution of the Works, or as to the measurement or quality and valuation of the Works,

or as to the measurement or quality and valuation of the Works execution under this Contract,

or as extra thereupon the same shall be explained by the Engineer, and his explanation shall,

subject to the final decision of the Commissioner in case a reference be made to him under

condition no.13(d) be binding upon the Contractor and Contractor shall execute the Works

according to such explanation (subject to aforesaid) and shall also do all such Works and

required things as may be necessary for the proper completion of Works as implied by the

drawings and specifications, even though such Works and things are not specifically shown and

described in the said drawings and specifications.

Provided always that if in the opinion of the Engineer compliance with any such instructions

shall involve the Contractor in any expenses which by reason of any such ambiguity or


discrepancy, the Contractor did not and had reasons not to anticipate the extra charges if any

shall be paid in accordance with conditions 10(a).

The time for completion of the Works, shall be in even of any deviations resulting in additional

cost over the contract price being ordered, be extended or reduced reasonably by the Engineer.

The Engineer’s decision in this case shall be final.

4.f)Official Secrecy:

The Contractor shall of all the persons employed in any works in connection with the contract

that the India Official Secrets Act 1923 (XIX of 1923) applies to them and will continue to apply

even after execution of the said works and they will not disclose any information regarding this

contract to any third party. The contractor shall also bring into notice that, any information found

to be leaked out or disclosed the concern person as well as the Contractor will be liable for

penal action; further the Corporation will be at liberty to terminate the contract without notice.

4.g)Subsequent Legislation :

If on the day of submission of bids for the contract, there occur changes to any National or State

stature, Ordinance, decree or other law or any regulation or By-laws or any local or other duly

constituted authority or the introduction of any such National or State Statute, Ordinance,

decree or by which causes additional or reduced cost to the Contractor, other than under

Clause 10 in the execution of contract, such additional or reduced cost shall, after due

consultation with the Contractor, be determined by the concerned Engineering Department of

MCGM and shall be added to or deducted from the Contract Price with prior approval of

competent authority and the concerned Engineering Department shall notify the Contractor

accordingly with a copy to the Employer. Notwithstanding the foregoing, such additional or

reduced cost shall not be separately paid or credited if the same shall already taken into

account in the indexing of any inputs to the Price Adjustment Formulae in accordance with the

provisions of Clause 10 b.

MCGM reserve the right to take decision in respect of addition/reduction of cost in contract.

4h)Contract Execution

All required documents for execution of the contract shall be submitted within 30 days from the

date of issue of letter of acceptance. If the documents are not submitted within the stipulated

time a penalty of Rs 5000/- per day will be applicable to the contractor. All contract documents

need to be duly affixed with stamp duty properly signed along with evidence/proof of payment of

security/contract deposit/ within 30 days from the date of letter of acceptance received by him.

Obligation of MCGM


i. The concerned department shall submit the contract which is verified by

Accounts department, to Municipal Secretary Office for common seal in

45 days from the receipt of those papers in the office

ii. Municipal Secretary office will complete the process of affixing common

seal in next 30 days.

iii. If the contractor has complied with all the contractual obligations and the

contract verified by the accounts department and forwarded to Municipal

Secretary office for affixing common seal. It shall be treated as deem

executed after 30 days of submission and no payment shall be withheld

for want of contractual obligations.

4i) No Claim To Any Payment Or Compensation Or Alteration In Or Restriction Of Work

(a) If at any time after the execution of contract documents, the Engineer shall for

any reason whatsoever, desires that the whole or any part of the works specified in

the Tender should be suspended for any period or that the whole or part of the work

should not be carried out, at all, he shall give to the Contractor a Notice in writing of

such desire and upon the receipt of such notice, the Contractor shall forthwith

suspend or stop the work wholly or in part as required after having due regard to the

appropriate stage at which the work should be stopped or suspended so as not to

cause any damage or injury the work already done or endanger the safety thereof,

provided that the decision of the Engineer as to the stage at which the work or any

part of it could be or could have been safely stopped or suspended shall be final and

conclusive against the contractor.

The Contractor shall have no claim to any payment or compensation whatsoever by

reason of or in pursuance of any notice as aforesaid, on account of any suspension,

stoppage or curtailment except to the extent specified hereinafter.

(b) Where the total suspension of Work Order as aforesaid continued for a continuous

period exceeding 90 days the contractor shall be at liberty to withdraw from the

contractual obligations under the contract so far as it pertains to the unexecuted part

of the work by giving 10 days prior notice in writing to the Engineer within 30 days of

the expiry of the said period of 90 days, of such intention and requiring the

Engineering to record the final measurement of the work already done and to pay

final bill. Upon giving such Notice, the Contractor shall be deem to have been

discharged from his obligations to complete the remaining unexecuted work under

his contract. On receipt of such notice the Engineer shall proceed to complete the

measurement and make such payment as may be finally due to the contractor within

a period of 90 days from the receipt of such Notice in respect of the work already

done by the contractor. Such payment shall not in any manner prejudice the right of

the contractor to any further compensation under the remaining provisions of this

clause.


(c) Where the Engineer required to Contractor to suspend the work for a period in

excess of 30 days at any time or 60 days in the aggregate, the Contractor shall be

entitled to apply to the Engineer within 30 days of the resumption of the work after

such suspension for payment of compensation to the extent of pecuniary loss

suffered by him in respect of working machinery remained ideal on the site of on the

account of his having an to pay the salary of wages and labour engaged by him

during the said period of suspension provided always that the contractor shall not be

entitled to any claim in respect of any such working machinery, salary or wages for

the first 30 days whether consecutive or in the aggregate or such suspension or in

respect of any such suspension whatsoever occasion by unsatisfactory work or any

other default on his part, the decision of the Engineer in this regard shall be final and

conclusive against the contractor.

4j. The limit for unforeseen claims

Under no circumstances whatever the contractor shall be entitled to any

compensation from MCGM on any account unless the contractor shall have

submitted a claim in writing to the Eng-in-change within 1 month of the case of such

claim occurring.

5. General Obligations of Contractor

5.a) Inspection of site and sufficiency of tender:

• The Contractor shall inspect and examine the site and its surrounding and shall satisfy

himself before submitting his tender as to the nature of the ground and subsoil (so far as is

practicable), the form and nature of the site, the quantities and nature of the work and

materials necessary for the completion of the works and means of access to the site, the

accommodation he may require and in general shall himself obtain all necessary information


as to risk, contingencies and other circumstances which may influence or affect his tender.

He shall also take into consideration the hydrological and climatic conditions.

• The Employer shall make available to the Contractor data on hydrological and sub-surface

conditions as obtained by or on his behalf from investigations relevant to the works but the

Contractor shall be responsible for his own interpretation thereof. The contractor shall

engage his investigating agency with prior approval of the Engineer from the approved list of

such agencies by MCGM or Govt at his cost initially before commencing actual work and

which shall be reimbursed immediately subject to satisfaction of the Engineer for faithful

compliance and submission of required data regarding such investigation within specified

time.

• The Contractor shall be deemed to have satisfied himself before tendering as to the

correctness and sufficiency of his tender for the works and of the rates and prices quoted in

the schedule of works / items / quantities, or in Bill of Quantities, which rates and prices

shall, except as otherwise provided cover all his obligations under the Contract and all

matters and things necessary for proper completion and maintenance of the works. No

extra charges consequent on any misunderstanding.

• Not Foreseeable Physical Obstructions or Conditions : If, however, during the execution

of the Works the Contractor encounters physical obstructions or physical conditions, other

than climatic conditions on the Site, which obstructions or conditions were, in his opinion, not

foreseeable by an experienced contractor, the Contractor shall forthwith give notice thereof

to the Engineer. On receipt of such notice, the Engineer shall, if in his opinion such

obstructions or conditions could not have been reasonably foreseen by an experienced

contractor, after due consultation with the Contractor, determine:

• any extension of time to which the Contractor is entitled under Clause 8 (f) and

• The amount of any costs which may have been incurred by the Contractor by reason of

such obstructions or conditions having been encountered, which shall be added to the

Contract Price.

and shall notify the Contractor accordingly. Such determination shall take account of any

instruction which the Engineer may issue to the Contractor in connection therewith, and any

proper and reasonable measures acceptable to the Engineer which the Contractor may take

in the absence of specific instructions from the Engineer. However such costings shall be

got approved by the competent authority as governed vide rules prevailing with authority.

5. b)Office for the Engineer (Works costing upto Rs.50 Lakhs)

The Contractor shall at his own cost and to satisfaction of the Engineer provide a small

temporary office, at the work-site which will include tables, chairs and lockers for keeping the

records. He shall also make necessary arrangements for drinking water, telephone with a pre-

requisite of e-governance and electronic communication. These offices are not to be allowed on

public roads without the written instruction of the Engineer. These offices should be preferably

located within 50 to 500 m of the worksite. In case the office is more than 500m away from the

worksite, the contractor is to provide conveyance for Municipal Staff.


5. c) Office for the Engineer (Works costing above Rs.50 lakhs)

The Contractor shall at his own cost and to satisfaction of the Engineer provide a temporary

office at the work-site which will include tables, chairs and lockers for keeping the records. He

shall also make necessary arrangements for drinking water, latrines, with doors, windows, locks,

bolts and fastenings sufficient for security for the Engineer, and his subordinates, as close to the

works from time to time in progress as can be conveniently arranged, and shall at his own cost

furnish the office with such chairs, tables, lockers, locks and fastenings as may be required by

the Engineer, and no expense of any kind in connection with the erection or upkeep of the

offices or fittings shall be borne by the Corporation, but all such work shall be carried out by the

Contractor and the expenses thereof defrayed by him. The Contractor shall also make water

connections and fit up stand pipe with a bib tap at each office. The latrines and the water

connections shall be subject to all the conditions herein elsewhere laid down for temporary

water connection and latrines generally with all requisite equipments for e-governance and

electronic and digital communication. These offices are not to be allowed on public roads

without the written instruction of the Engineer. These offices should be preferably located within

50 to 500 m of the worksite. In case the office is more than 500m away from the worksite, the

contractor is to provide conveyance. Also, for staff working beyond working hours the contractor

has to provide conveyance.

Permission for provision and removal of office on completion of work: The tenderer shall

obtain permission for provision of site office, cement go-down, store, etc. on payment of

necessary cost implication. The cement go-down, Watchman cabins, etc. shall be provided as

directed and shall be removed by the Tenderers on completion of the work at their cost. It is

binding on the Tenderer to fulfill requirements of Environmental Authorities. The location of such

office shall be finalized and got approved from the Engineer before erection/commencement

work.

5. d) Contractor’s office near works: The Contractor shall have an office near the works at

which notice from the Commissioner or the Engineer may be served and shall, between the

hours of sunrise and sunset on all working days, have a clerk or some other authorized person

always present at such office upon whom such notices may be served and service of any

notices left with such clerk or other authorized person or at such office shall be deemed good

service upon the Contractor and such offices shall have pre-requisite facilities for e-governance.

5.e) Works to be carried out:

The work to be carried out under the Contract shall, except as otherwise provided in these

conditions, include all labour, materials, tools, plant, equipment and transport which may be

required in preparation of and for and in the full and entire execution and completion of the

works. The descriptions given in the schedule of works / items / quantities, and the Bills of

Quantities shall, unless otherwise stated, be held to include waste on materials, carriage and

cartage, carrying in, return or empties, hoisting, setting, fitting and fixing in position and all other


labour necessary in and for the full and entire execution and completion as aforesaid in

accordance with good practice and recognized principles.

5 f) Security Deposit:

The security deposit shall mean and comprising of I) Contract Deposit and II) Retention

Money.

5.f.i) Contract Deposit – The successful tender, here after referred to as the

contractor shall pay an amount equal to two (2) percent of the contract sum shall be paid

within thirty days from the date of issue of letter of acceptance.

5.f.ii) Retention Money – The contractor shall pay the retention money an amount

equal to five (5) percent of the contract sum which will be recovered from the contractors

every bill i.e. interim / running / final bill. The clause of retention money will not be

applicable M. & E. works.

5.f.iii) Additional Security Deposit

The additional security deposit will be applicable when a rebate of more than of 12 % at

the rate of with no maximum limit. The ASD is calculated as follows:

Additional security deposit = (X) x office estimated cost,

Where X=percentage rebate quoted above 12%

The ASD shall be paid online in the ASD tab for bidders in e-tendering system before

submission of the bid.

5.f.iv) Performance Guarantee

The successful tender, here after referred to as the contractor shall pay in the form of

“Performance Guarantee” at different rates for different slabs as stated below:

Offer PG applicable %

For premium, at par and

rebate less than 12%

PG= 0.92% x contract sum

applicable for rebate of 12%

For offer below rebate

of 12%

P.G. = {0.92% x contract sum

applicable for rebate of 12%} +(X) x

contract sum

where

X= percentage rebate quoted

more than 12%

Note: Contract sum shall mean amount after application of rebate/premium as quoted by

the contractor with contingencies only and excluding price variation.

The PG shall be paid in one the following forms.

I) Cash (In case guarantee amount is less than Rs.10,000/-

II) Demand Draft (In case guarantee amount is less than Rs.1,00,000/-)


III) Government securities

IV) Fixed Deposit Receipts (FDR) of a Schedule Bank.

V) An electronically issued irrevocable bank guarantee bond of any Schedule bank or f in

the prescribed form given in Annexure.

Performance Guarantee is applicable over and above the clause of Security Deposit.

Performance Guarantee will have to be paid & shall be valid till the defect liability period or

finalization of final bill whichever is later.

This deposit will be allowed in the form of I to V as mentioned above and shall be paid

within 15 days after receipt of Letter of Acceptance.

Note: Following exceptions shall be adopted for ‘Demolition Tenders’:

• Irrespective of the offer (Rebate/ at par/ premium), ASD shall be differed and only PG of

10% of contract sum be taken from the successful bidder on award of contract only.

• MCGM departments shall ensure to incorporate specific condition regarding above in bid

document and e-tender notice.

5.f.v) Refund of Security Deposit

I. Refund of Contract Deposit

The Contract Deposit shall be released within 30 days after completion of 3rd year of

DLP (in case of 5 years DLP) and after issue of ‘Defect Liability Certificate’ (in case of 1

or 2 or 3 years DLP) subject to no recoveries are pending against the said work,

provided that the Engineer is satisfied that there is no demand outstanding against the

Contractor. No claim shall be made against the Balance Contract Deposit after the issue

of Defects Liability Certificate.

II. Refund of Retention Money

One-half (50%)of the Retention Money shall be released within 30 days of issue of

‘Certificate of Completion’ with respect to the whole of the Works. In the event the

Engineer issues a Taking-over Certificate for a section or part of the Permanent Works,

only such proposition thereof as the Engineer determines (having regard to the relative

value of such section or part of the Works) shall be considered by the Engineer for

payment to the Contractor.

The balance Retention Money shall be released within 30 days after completion of 3rd

year of DLP (in case of 5 years DLP) and after issue of ‘Defect Liability Certificate’ (in

case of 1 or 2 or 3 years DLP) provided that the Engineer is satisfied that there is no

demand outstanding against the Contractor. In the event of different Defects Liability

Periods have been specified or become applicable to different sections or parts of the


Permanent Works, the said moneys will be released within 30 days on expiration of the

latest of such Defects Liability Periods.

Payment of the above mentioned 50% is exclusive of the amounts to be withheld as

stated in and that amount shall be paid as per condition stated therein.

III. Refund of Additional Security Deposit

The additional security deposit shall be released within 30 days of issue of ‘Certificate of

Completion’ with respect to the whole of the Works. In the event the Engineer issues a

Taking-over Certificate for a section or part of the Permanent Works, only such

proposition thereof as the Engineer determines (having regard to the relative value of

such section or part of the Works) shall be considered by the Engineer for payment to

the Contractor.

IV. Refund of Performance Guarantee

The Deposit on account of performance guarantee shall be released within 30 days of

completion of Defects Liability Certificate subject finalization of final bill whichever is later

and no recoveries are pending against the said work, provided that the Engineer is

satisfied that there is no demand outstanding against the Contractor.

Summary of time of Refund of deposit is tabulated as follows:

a) Time of Refund for works having 5 years DLP

Deposits

refunded after

completion

After 3 yrs of DLP After Completion of

DLP

ASD + 50% of RM CD+50% of RM PG

b) Time of Refund for works having 1 or 2 or 3 years DLP

Deposits

refunded after

completion

After Completion of DLP

ASD + 50% of RM CD+50% of RM+PG


5.f.vi.) Cost of Securities: The cost of complying with the requirements of clause 5f(i), 5f(ii)

and 5f(iii) and 5f(iv) shall be borne by the Contractor.

5.(f)(vii) Action when whole of security deposit is forfeited:

In any case in which under any Clause of this contract, the contractor shall have

rendered himself liable to pay compensation amounting to the whole of this security deposit

whether paid in one sum or deducted by instalments or in the case of abandonment of the work

owning to serious illness or death of the contractor or any other cause, the Engineer on behalf

of the Municipal Commissioner shall have power to adopt any of the following process, as he

may deem best suited to the interest of MCGM -

(a) To rescind the contract (for which recession notice in writing to the contractor under the

head of Executive Engineer shall be conclusive evidence) and in that case, the security deposit

of the contract shall stand forfeited and be absolutely at the disposal of MCGM.

(b) To carry out the work or any part of the work departmentally debiting the contractor with

the cost of the work, expenditure incurred on tools and plant, and charges on additional

supervisory staff including the cost of work-charged establishment employed for getting the un-

executed part of the work completed and crediting him with the value of the work done

departmentally in all respects in the same manner and at the same rates as if it had been

carried out by the contractor under the terms of his contract. The certificate of the Executive

Engineer as to the costs and other allied expenses so incurred and as to the value of the work

so done departmentally shall be final and conclusive against the contractor.

(c) To order that the work of the contractor be measured up and to take such part thereof as

shall be un-executed out of his hands, and to give it to another contractor to complete, in which

case all expenses incurred on advertisement for fixing a new contracting agency, additional

supervisory staff including the cost of work charged establishment and the cost of the work

executed by the new contract agency will be debited to the contractor and the value of the work

done or executed through the new contractor shall be credited to the contractor in all respects

and in the same manner and at the same rates as if it had been carried out by the contractor

under the terms of his contract. The certificate of the Executive Engineer as to all the cost of

the work and other expenses incurred as aforesaid for or in getting the un-executed work done

by the new contractor and as to the value of the work so done shall be final and conclusive

against the contractor.

In case the contract shall be rescinded under Clause (a) above, the contractor shall not

be entitled to recover or be paid any sum for any work therefor actually performed by him under

this contract unless and until the Executive Engineer shall have certified in writing the

performance of such work and the amount payable to him in respect thereof and he shall only

be entitled to be paid the amount so certified. In the event of either of the courses referred to in

Clause (b) or (c) being adopted and the cost of the work executed departmentally or through a

new contractor and other allied expenses exceeding the value of such work credited to the

contractors amount of excess shall be deducted from any money due to the contractor, by

MCGM under the contract or otherwise, howsoever, or from his security deposit or the sale


proceeds thereof provided, however, the contractor shall have no claim against MCGM even if

the certified value of the work done departmentally or through a new contractor exceeds the

certified cost of such work and allied expenses, provided always that whichever of the three

courses mentioned in clauses (a), (b) or (c) is adopted by the Executive Engineer, the contractor

shall have no claim to compensation for any loss sustained by him by reason of his having

purchase or procured any materials or entered in to any engagements or made any advance on

account of or with a view to the execution of the work or the performance of the contract.

5.f.(viii) Contract may be rescinded and security deposit forfeited for bribing a public

officer or if contractor becomes insolvent

If the contractor assigns or sublets his contracts or attempt so to do, or become insolvent or

commence any proceeding to get himself adjudicated and insolvent or make any composition

with his creditors, or attempt so to do or if bribe, gratuity, gift, loan, perquisite, reward or

advantage, pecuniary or otherwise, shall either directly or indirectly be given promised or offered

by the contractor or any of his servants or agents through any public officer, or person in the

employ of MCGM/Govt. in any way relating to his office or employment, or if any such officer or

person shall become in any way directly or indirectly interested in the contract the Engineer In-

charge may thereupon, by notice in writing rescind the contract and the Security Deposit of the

Contractor shall thereupon stand forfeited and be absolutely at the disposal of MCGM and the

same consequences shall ensure as if the contract had been rescinded under above clause

5.f.(vii) hereof; and in addition the contractor shall not be entitled to recover or be paid for any

work therefore actually performed under the contract.

5.f.(ix) For The Unsatisfactory Progress Of Any Particular Portion Of The Work:

If the progress of any particular portion of the work is unsatisfactory, the Executive Engineer

shall not withstanding that the general progress of the work is in accordance with the conditions

mentioned in the appropriate clause be entitled to take action for forfeiture of security deposit

after giving the contractor 10 days notice in writing. The contractor will have no claim for

compensation, for any loss sustained by him owing to such action.

5.g) Levels:

All levels referred to in connection with these works are based on the plane known as the

Mumbai Town Hall Datum (T.H.D).

5.h) Use of Municipal Land:

i. The Contractor shall not be permitted to enter on (other than for inspection purposes) or take

possession of site until instructed to do so by the Engineer in writing. The portion of the site to

be occupied by the Contractor shall be defined and / or marked on the site plan, failing which

these shall be indicated by the Engineer and the Contractor shall on no account be allowed to

extend his operations beyond these areas. The Contractor will be allowed to use such land,

free of charge, for the purpose of sheds, offices thereon for themselves and for the Engineer

and his subordinates and shall remove the same from the ground on the completion of the

works, or when required to do so, by the Engineer after receiving 7 days’ notice. He shall make

good any damage which may have been done and restore to good condition anything which


may have been disturbed during the period of his occupation. The contractor shall be allowed to

use the land for labour employed on the job for emergency situation

He shall not use or allow to be used any such ground, sheds or offices, or any portion of the site

of the works, for any other purpose than the carrying out of works under this Contract. In the

event of there being on plot or ground or insufficiency of ground belonging to the Corporation

available for the above purpose, the Contractor shall provide other such ground at his own cost.

The Contractor shall in any case pay all taxes which may have to be paid in respect of all

ground, sheds or offices used as above, and all the license fees, etc. that may be used as

above, and all the license fees, etc. that may be demanded for the storage or otherwise of the

various articles as per rules in force. The Contractor shall provide, if necessary or if required on

the site all temporary accesses thereto and shall later, adopt and maintain the same as required

from time to time and shall take up and clear them away as and when no longer required and

make good all damage done to the site.

ii) Save in so far as the Contract may prescribe:

(a) The extent of portions of the site of which the Contractor is to be given possession from

time to time.

(b) The order in which such portions shall be made available to the Contractor.

(c) And, subject to any requirement in the contract as to the order in which the Works shall

be executed, the Employer will, with the Engineer’s notice to commence the Works, give to

the Contractor possession of so much of the site and

(d) Such access as, in accordance with the Contract, is to be provided by the Employer as may

be required to enable the Contractor to commence and proceed with the execution of the Works

in accordance with the program referred to in Clause 8h if any, and otherwise in accordance

with such reasonable proposals as the Contractor shall, by notice to the Engineer make. The

Employer will, from time to time as the Works proceed, give to the Contractor possession of

such further portions of the Site as may be required to enable the Contractor to proceed with the

execution of the Works with due dispatch in accordance with such program or proposals, as the

case may be.

iii)Failure to give possession: If the Contractor suffers delay and / or incurs costs from failure

on the part of the Employer to given possession in accordance with the terms of Sub Clause 5h,

the Engineer shall determine :

(a) any extension of time to which the Contractor is entitled under Clause 8d and

(b) The amount of such costs, which shall be added to the Contract Price, and shall notify

the Contractor accordingly.

5.i)Water Supply for Municipal Work.:

Water made available to the Contractor from either nearest municipal main or other municipal

source of lakes or wells shall be charged to the contractors as per prevailing water charges.


The Contractor will have to make his own arrangements to get at his cost necessary water

connection from the Municipal mains, if available. It is, however, agreed that if in the opinion of

the Hydraulic Engineer, water is used improperly or wasted, the Hydraulic Engineer may cause

the un-metered supply of water to be discontinued and the water will be supplied to the

Contractor through a metered connection. He will be charged at the prevailing rates for the

quantity of water which in the opinion of the Hydraulic Engineer, has been used in excess of a

reasonable quantity required to be used on that work.

The Contractors will be charged for all the cost connected with taking any connections with the

mains that may be required for the purpose of the work, and for afterwards cutting off such

connections, besides the usual Municipal charges for the use of the meters, if any, fixed by the

water department in case of improper use or wastage of water. In the event of the meter getting

damaged, or found to be out of order, inaccurate or tampered with, the excess quantity of water

chargeable due to misuse will be assessed on the discharging capacity of the water connection.

In case the Contractor finds the water supply to be inadequate for the construction of the work,

the balance quantity of water shall be procured by the contractor and the cost of procuring,

pumping and conveyance of the balance quantity of water shall be entirely borne by the

contractor.

In case municipal water mains are not available nearby, contractors attention is invited to

Clause 5 given here before. In such cases, the contractor shall have to make his own

arrangements for procuring, pumping and conveyance of water at his cost.

The Contractor may be allowed to use water from the Municipal hydrants subject to such terms

and conditions as shall be laid down by the Hydraulic Engineer. The payment for use of water

from municipal hydrants shall be entirely borne by the Contractors.

The Engineer may, however, allow use of water from other sources, viz. lakes, wells, etc. for

construction purposes only in consultation with the Hydraulic Engineer provided such

permission is requested sufficiently in advance. In all these cases the Contractor shall have to

make his own arrangements for pumping and conveyance of water. The payment for use of

water from such sources shall also be entirely borne by the Contractor.

5.j)Pumping out Water.:

The Contractor will be required to provide and work at his own cost all pumps, engines and

machinery requisite to keep the trenches for the sewer, drains or foundations and all other

excavations clear of water, whether subsoil water, storm waste or leakage from tanks, wells,

drains, sewers, water mains, tide water etc. so that there may be no accumulation of such water

and no setting out may be done, no masonry may be laid, no concrete deposited, no joints

made and no measurements taken in water. The pumping shall be continued so long after the

execution of any portion of the Work as the Engineer may consider necessary for the work to

set. For the purpose of keeping the excavations as dry as possible the work would, if necessary

be divided into sections or separate portions as per best engineering practices and temporary

dams will have to be put up by the Contractor, sumps for the suction pipes to work in, will have

to be excavated by the Contractor at such distances apart and to such depths as the as per best

engineering practices. When the work progresses other sumps must, from time to time, be


excavated by the Contractor, disused sumps being filled up by him with dry rubble carefully

hand packed to the satisfaction of the Engineer. The Contractor will not be paid extra for any

temporary dams or sumps or their removal or refilling nor will such works be taken into

measurement in any way, unless otherwise provided.

The Contractor shall not allow any accumulation of water either from the Discharge of his

dewatering pumps or his water connections on site of his work. The Contractor shall make

proper provision for leading the pumped discharge to the nearest water entrance, storm water

drain, manholes, or water course by means of a wooden or G.I. channel or hose pipe. Under no

circumstances the discharge will be allowed to flow, along a paved surface. If an accumulation

is unavoidable, it shall be treated with insecticides to the satisfaction of the Engineer. In case of

failure to do this on the part of Contractor such accumulation shall be treated by the Municipal

Corporation at the risk and cost of the Contractor.

The contractors should note that under no circumstances any payment for pumping out water

finding its way into trenches, hill cutting, excavated pits, works site etc. from whatever sources

will be permissible unless otherwise specifically in the tender.

5.k) Contractors’ staff:

The Contractor shall employ in and about the execution of works only such persons as are

skilled and are experienced in their several trades and the Engineer shall be at liberty to object

to and require the Contractor to remove from the works any person, employed by the Contractor

in or about the execution of the works, who in the opinion of the Engineer misconducts himself

or is incompetent or negligent in the proper performance of his duties and such person shall not

be again employed upon the works without permission of the Engineer.

5.l)Contractors’ Supervision:

The Contractor shall himself supervise the execution of works or shall appoint qualified

personnel with prior approval by the Engineer to act in his stead. If, in the opinion of the

Engineer the Contractor has himself not sufficient knowledge and experience to be capable of

receiving instructions or cannot give his full attention to the works, the Contractor shall at his

own expense, employ as his accredited agent an Engineer or a suitably qualified and

experienced person approved by the Engineer. The name of the agent so appointed, along with

the qualifications, experience and address shall be communicated to the Engineer. The agent

shall be a responsible person adequately authorized by the Contractor to take decision on site

and to spend money if required for procuring material and labour etc. to carry out emergency

works in the interest of the contract Work, if so required by the Engineer. Orders given to

Contractor’s agent shall be considered to have the same force as if these had been given to the

Contractor himself. If the Contractor fails to appoint a suitable agent as directed by the

Engineer, the Engineer shall have full powers to suspend the execution of the works until such

date as a suitable agent is appointed and the Contractor shall be held responsible for the delay

so caused to the works. If approval of the representative is withdrawn by the Engineer, the

contractor shall, as soon as practicable, having regard to the requirement of replacing him as

hereinafter mentioned. He, after receiving notice of such withdrawal, remove the representative

from the Works and shall not thereafter employ him again on Works in any capacity and shall

replace him by another representative approved by the Engineer.


5.m)Setting out the works:

The Engineer shall supply dimensioned drawings, level and other information necessary to

enable the Contractor to set out the works. The Contractor shall provide all setting out

apparatus at his own cost, such as leveling instruments in good working condition and

appliances, all pegs, ranging rods, long measuring rods, marked meters, and decimeters and

each meter and decimeter numbered, posts and sight-rails, boning rods, moulds, templates, etc.

together with any reasonable number of laborers that may be required and set out the work and

be responsible for the accuracy of the same in relation to original points, lines and levels of

reference given by the Engineer in writing The Contractor shall amend at his own cost and to

the satisfaction of the Engineer any error found at any stage which may arise through inaccurate

setting out unless such error is based on incorrect data furnished in writing by the Engineer, in

which case the cost of rectification shall be borne by the Municipal Corporation. The Contractor

shall protect and preserve all bench marks used in setting out the works till the end of Defects

Liability period unless the Engineer directs its early removal. The Contractor should also be

keep leveling instrument in good working condition throughout the period of construction work

on site.

5.n) Precautions for works in thorough-fares:

a)While the execution of any work is in progress in any street or thoroughfare the Contractor at

his own cost shall make adequate provision for the passage of traffic, for securing safe access

to all premises approached from such street or thoroughfare, and for any drainage, water

supply, or means of lighting or any other utility service which may be interrupted by reason of

execution of the work. Whenever it may be necessary to stop the traffic in any street or

thoroughfare permission must first be obtained from the Engineer and the Contractor shall then

put up such barriers and adopt such other measures or take precautions as may be necessary

or as the Engineer may direct for regulation of traffic. The work shall in such cases be executed

night and day or for as long a period as practicable if so ordered by the Engineer, and with such

speed and vigour as he may require, so that the traffic may be impeded for as short a time as

possible. The Contractor shall remove the barriers as soon as the necessity for them has

ceased. Care shall be taken by the Contractor to cause the least possible obstruction to traffic

during the progress of the work.

b) The contractor shall use every reasonable means to prevent any of the roads or bridges

communicating with or on the routes from the site from being damaged or injured by any traffic

of the contractor or any of his subcontractors and, in particular, shall select routes, choose and

use vehicles and restrict and distribute loads so that any such extraordinary traffic as will

inevitably arise from moving of materials, Plant, Contractor’s equipment or Temporary works

from and to the site shall be limited, as far as reasonably possible and so that no unnecessary

damage or injury may be occasioned to such roads and bridges.

Save in so far as the Contract otherwise provides, the Contractor shall be responsible for and

shall pay the cost of strengthening any bridges or altering or improving any road communicating

with or on the routes to the site to facilitate the movement of Contractors equipment or

Temporary Works and the Contractor shall indemnify and keep indemnified the Employer

against all claims for damage to any such road or bridge caused by such movement; including


such claims as may be made directly against the employer, and shall negotiate and pay all

claims arising safely out of such damage.

If it is found necessary for the Contractor to move one or more loads of heavy constructional

equipment, materials or pre-constructed units or parts of units of work over roads, highways,

bridges on which such oversized and overweight items are not normally allowed to be moved,

the Contractor shall obtain prior permission from the concerned authorities. Payments for

complying with the requirements, if any, for protection of or strengthening of the roads,

highways or bridges shall be included in his contract price.

Where the nature of Works is such as to require the use by the Contractor of waterborne

transport the forgoing provisions of this Clause shall be construed as though “road included a

lock, dock, sea wall or other structure related to waterway and “vehicle” included craft and shall

have effect accordingly. Any non-compliance to these precautions will attract penalties as per

condition 14 (a).

5.o) Maintenance of underground utility services:

All the underground utility services such as water pipes, gas pipes, drains, sewers, cables, etc.

which may be met up in or about any excavation, shall if the Engineer deem it practicable, be

properly maintained and protected by the Contractor himself or through other agency by means

of shoring, strutting, planking over, padding or otherwise as directed by the Engineer during the

progress of the work without claiming any extra charges. Any damage to these underground

utility services shall be immediately remedied by the Contractor or by other agency at its own

cost, failing which the Engineer may with or without notice adopt such measures as he may

deem necessary at the risk and cost of the Contractor.

If on the other hand, the Engineer considers it impracticable for the Contractor to maintain any

such underground utility services and that the exigencies of the work necessitate, the breaking

down, removal or diversion of the said utility services, the cost of such breaking down, removal

or diversion including that of rebuilding, replacing, diverting and reinstating of any such utility

services shall be paid to the Contractor if done by him. However, the cost of providing pumps,

chutes or other appliances as the Engineer may direct for the raising or temporary passage of

the water or sewage and the cost of pumping out or removing as often as the Engineer may

direct, any water or sewage which may escape from any such underground utility services, shall

be borne by the Contractor.

5.p) Fencing, watching and lighting:

The Contractor shall provide and maintain at his own expense all lights, guards, fencing and

watching when and where necessary or as required by the Engineer for the protection of the

safety and convenience of those employed on the works or the public. In the event of failure on

the part of the Contractor, the Engineer may with or without notice to the Contractor put up a

fence or improve a fence already put up or provide and / or improve the lighting or adopt such

other measures as he may deem necessary, and all the cost of such procedures as may be


adopted by the Engineer shall be borne by the Contractor. In addition the Engineer may impose

such fines or penalty as the Engineer may deem reasonable, under Clause 14a.

5.q) Treasure Trove Fossils etc:

All fossils, coins, articles of value or antiquity and structural and other remains things of

geological or archaeological interest discovered in or upon the site shall be absolute property of

the Municipal Corporation and the Contractor shall duly preserve them and shall take

precautions to prevent his workmen or any other person from removing or damaging any such

articles or thing and shall immediately upon discovery thereof and before removal acquaint the

Engineer with such discovery and shall from time to time deliver the same to such person or

persons as the Engineer may from time to time appoint to receive the same at the expense of

the Corporation.

All fossils, coins, articles of value or antiquity and structures and other remains or things of

geological or archeological interest discovered in the Site shall, as between the Employer and

the Contractor, be deemed to be absolute property of the Employer. The Contractor, shall take

reasonable precautions to prevent his workmen or any other persons from removing or

damaging any such article or thing and shall, immediately upon discovery thereof and before

removal, acquaint the Engineer of such discovery and carry out the Engineer’s instruction for

dealing with the same. If by any reason of such instructions, the Contractor suffer delay and/or

incurs costs then the Engineer shall, after due consultation with the Employer, determine:

(a) any extension of time to which the Contractor is entitled under clause 8(d), and

(b) the amount of such costs, which shall be added to the Contract Price, and shall notify the

contractor accordingly, with a copy to Employer.

Materials of any kind obtained from excavation of the site shall remain the property of the

Municipal Corporation and shall be disposed off as the Engineer may direct.

5.r)Protection of trees:

Trees designated by the Engineer shall be protected from damage during the course of the work

and earth level within one meter of each such tree shall not be changed. Where necessary,

such trees shall be protected by temporary fencing. All such cost shall be borne by the

Contractor.

5.s) Contractor to preserve peace:

The Contractor shall at all times during the progress of the work take all requisite precaution and

use his best endeavors for preventing any riotous or unlawful behavior by or amongst the

workers and other employed on the works and for the preservation of peace and protection of

the inhabitants and security of property in the neighborhood of the works. He shall also pay the

charges of such special police (if any) as the Engineer may deem necessary.

5.t)Sanitation:

The Contractor shall, at his own cost, make all necessary provisions for health and safety of his

work-people. He shall, when required by the Engineer, provide proper latrines and urinals to the

satisfaction of the Engineer in such numbers and in such localities as he may require, and shall


take all steps necessary to compel his work-people to resort to such latrines and urinals, and

shall dismiss from his employ and remove from the works any one detected obeying the calls of

nature in any place, other than the conveniences allotted for such purposes. The said latrines

shall be under the superintendence and orders of the Engineer or his subordinates, and shall be

served with Municipal Halalkhore service. The Contractor shall, on no account, allow any huts

to be erected on Municipal property unless otherwise permitted by the Engineer in writing, to be

inhabited after sunset by anyone except the watchmen required for the Works, and none of his

employees, except such watchmen as aforesaid, shall sleep at night on any part of the Works.

In case of any offence committed by any of the staff/workers or employees of the Contractor

against any of the provisions of this condition the Contractor shall be liable to a penalty not

exceeding Rupees Ten thousand per day for every such offense and the same shall be charged

to the amount of the Contractor.

If the works are situated outside the limits of Greater Mumbai, rules and regulations of the local

authority shall be made applicable to the Contractors and all the cost and any local taxes

thereof shall be borne by the Contractor.

5.uSafety Provisions:

The Contractor shall at his own expense arrange for the safety provisions indicated in Annexure

‘C’ or as required by the Engineer, in respect of all labour directly or indirectly employed for

performance of the Works and shall provide all facilities in connection therewith. In case the

Contractor fails to make arrangements and provide necessary facilities as aforesaid, the

Engineer shall be entitled to do so and recover the costs thereof from the Contractor.

5.v) Provision of first aid.:

The Contractor shall at his own cost provide and maintain at the site of works a standard first

aid box as directed and approved by the Engineer for the use of his own as well as the

Municipal Staff on site.

5.w) Apprentices :

The Contractor shall during the term of this agreement maintain as a part of his organization a

system of apprenticeship for training craftsmen, as may be approved by the Engineer. Failure

on the part of the Contractor to observe the stipulations of this condition shall be deemed to be

a failure to employ a sufficient number of proper and efficient workmen within the meaning of

Clause 2b and all the rights and remedies of the Commissioner therein provided including the

power to determine the Contract shall be applicable in such case. The Contractor shall duly

comply with provisions of the Apprentice Act (1961); failure or neglect to which he shall be

subject to all liabilities and penalties provided by the said Act and Rules

5.x)Storage of Explosives:

The Contractor shall obtain the previous permission of the competent authority such as the

Chief of Fire Services for the site, manner and method of storing explosives near the site of

work. All handling of explosives, including storage, transport shall be carried out under the rules

approved by The Petroleum and Explosives Safety Organisation (PESO) formerly Department

of Explosives, Nagpur.


5.y) Contractor’s other liabilities & Insurance:

From commencement to completion of the works, the Contractor shall take full responsibility for

the care thereof and for taking precautions to prevent loss or damage and to minimize the loss

or damage to the greatest extent possible and shall be liable for any damage or loss that may

happen to the works or any part thereof and all Municipal Tools and Plants from any cause

whatsoever (Save and except Expected Risks) and shall at his own cost repair and make good

the same so that at completion, the works and all Municipal Tools and Plants shall be in good

order and condition and in conformity in every respect with the requirements of the Contract and

instructions of the Engineer.

In the event of any loss or damage to the works or any part thereof or to any Tool and Plant or

to any material or article at the site from any of the Expected Risks of the following provisions

shall have effect.

a. The Contractor shall as may be directed in writing by the Engineer, remove from the site any

debris and so much of the works as shall have been damaged, taking to the Municipal

Stores such Municipal Tools & Plants articles and / or materials as may be directed.

b. The Contractor shall, as may be directed in writing by the Engineer, proceed with the

erection and completion of the works in accordance with the provisions and conditions of the

Contract.

c. There will be added to the Contract price the net amount due, ascertained in the same

manner as per deviations, or as prescribed for payment, in respect of the re-execution of the

works lost or damaged, the replacement of any Tools and Plants and of any materials and

articles lost or damaged but not incorporated in the Works on the day when the loss or

damage occurred and removal, by the Contractor as provided above of Municipal Tools and

Plants, articles and / or materials to the municipal stores and of the debris and damaged

works referred to therein.

Before commencing execution of the work, the Contractors shall without in any way limiting his

obligations and responsibilities under this condition, insure against any damage loss or injury

which may occur to any property (Private, Government and / or Municipal) or to any person

(including any employee of the Municipal Corporation) by or arising out of the contract.

“All insurances to be affected by the Contractors and / or his sub-contractors shall be taken out

with Directorate of Insurance, Maharashtra State only”. In case, however, a particular aspect is

not covered under the policy to be obtained from the Directorate of Insurance, Maharashtra

State, the Contractor will be allowed to have such insurance from other insurance company with

the prior permission of the Commissioner.

If required by the Engineer, the Contractor shall, without limiting the obligations and

responsibilities under this condition insure that work (from commencement to completion) the

Municipal Tools and Plants hired by the Contractor and all materials at site at their full value

against the risk of loss or damage from whatever cause arising, other than that of the Excepted

Risks. The said insurance shall be in the joint names of the Commissioner and the Contractor,

and the Contractor shall deposit with the Commissioner the said policy or policies along with the

receipts for premium of such insurance from time to time. All moneys payable by the insurers


under such policy or policies shall be recovered by the Municipal Corporation and shall be paid

to the Contractor in installments by the Commissioner for the purpose of rebuilding or

replacement or repair of the works and or goods destroyed or damaged as the case may be.

If the Contractor has a blanket insurance policy for all his works and the policy covers all the

items to be insured under this condition, the said policy shall be assigned by the Contractor, in

favor of the Municipal Corporation; provided, however, if any amount is payable under the policy

by the insurers in respect of Works other than the works under this Contract the same maybe

recovered by the Contractor directly from the insurers.

PROVIDED always that the Contractor shall not be entitled to payment under the above

provisions in respect of so much loss or damage as have been occasioned by any failure on his

part to perform his obligations under the Contract or not taking precautions to prevent loss or

damage or minimize the amount of such loss or damage.

Where a Municipal Building part thereof is rented by the contractor or is allowed to be used by

him he shall insure the entire building if the building or any part thereof is used by him for the

purpose of storing or using materials of combustible nature as to which the decision of the

Engineer shall be final and binding.

The Contractor shall indemnify and keep indemnified the Municipal Corporation against all

losses and claims for injuries or damage to any person or any property whatsoever which may

arise out of or in consequence of the construction and maintenance of the work and against all

claims, demands, proceedings, damages, coasts, charges and expenses whatsoever in respect

of or in relation thereto.

PROVIDED always that nothing herein contained shall be deemed to render the Contractor

liable for or in respect of or to the Municipal Corporation against any compensation or damage

caused by the Expected Risks.

The Contractor shall at all times indemnify the Municipal Corporation against all claims,

damages or compensation under the provisions of Payment of Wages Act, 1936, Minimum

Wages Act 1948, Employers Liability Act, 1938, the Workmen’s Compensation Act, 1923,

Industrial Dispute Act 1947, Indian Factories Act 1948 and Maternity Benefit Act 1961 or any

modifications thereof and rules made there under from time to time or as a consequence or any

accident or injury to any workman or other persons in or about the works, whether in the

employment of the Contractor or not, save and except where such accident or injury have

resulted from any act of the Municipal Corporation, their agents or servants and also against all

cost, charges and expenses of any suit, action or proceedings arising out of such accident or

injury and against all sum or sums which may with the consent of the Contractor be paid to

compromise or compound any such claim without limiting his obligations and liabilities as above

provided. The Contractor shall insure against all claims damages or compensation payable

under the various acts mentioned above or any modifications thereof or any other law relating

thereto. Third party policy should be valid till the end of contractual obligation of contractor for

reasons attributable to the scope of work of contractor.

The aforesaid insurance policies shall provide that they shall not be canceled till the

Commissioner has agreed to their cancellations.


The Contractor shall prove to the Commissioner from time to time that he has taken out all the

insurance policies referred to above and has paid the necessary premium for keeping the

policies alive till the expiry of the Defects Liability Period after completion of work for a period

not exceeding 12 months as per directives of Directorate of Insurance, Maharashtra State.

The Contractor shall ensure that similar insurance policies are taken out by his sub-Contractors

(if any) and shall be responsible for any claims or losses to the Municipal Corporation resulting

from their failure to obtain adequate insurance protection in connection thereof. The Contractor

shall produce or cause to be produced by his Sub-Contractor (if any) as the case may be, the

relevant policy or policies and premium receipts as and when required by the Commissioner.

If the Contractor and / or his sub-Contractors (if any) shall fail to effect and keep in force the

insurance referred above for any other insurance which he / they may require to effect under the

terms of Contract then and in any such case the Commissioner may without being bound to

effect and keep in force any such insurance and pay premium or premium as may be necessary

for that purpose and from time to time deduct the amount so paid by the Municipal Corporation

plus 20 percent of premium or permit amount as service charges from any money due or which

may become due to the Contractor or recover the same as debt from the Contractor. All

insurances to be effected by the contractor and / or his sub-contractor shall be taken out only

with the insurance Company or companies approved by the Municipal Commissioner.

The Contractors shall conform in all respects, including, by the giving of all notices and the

paying with all the fees, with the provision of:

(a) Any National or State Statute, Ordinance, or other Law, or any regulation, or bye-law of any

local or other duly constituted authority in relation to the execution and completion of the Works

and the remedying of any defects therein, and

(b) The rules and regulations of all public bodies and companies whose property or rights are

affected or may be affected in any way by the Works, and the Contractor shall keep the

Employer indemnified against all penalties and liability of every kind for breach of such

provision. Provided always that the employer shall be responsible for obtaining any planning,

zoning or other similar permission required for the Works to proceed and shall indemnify the

Contractor.

5.z) Changes in constitution: Where the contractor is a partnership firm, the prior approval in

writing of the Commissioner shall be obtained before any change is made in the constitution of

the firm. Where the contractor is an individual or Hindu Undivided Family business concern

such approval as aforesaid shall likewise be obtained before the contractor enters into any

partnership agreement where under the partnership form would have the right to carry out the

work hereby undertaken by the Contractor. If prior approval as aforesaid is not obtained the

contract shall be deemed to have been assigned in contravention of the condition no.13 g

hereof and the same action may be taken and the same consequences shall ensure as

provided for in the said condition.

5.aa) Facilities to the other Contractors :

The contractor shall, in accordance with the requirements of the Engineer, afford all reasonable

facilities to other Contractors engaged contemporaneously on separate Contracts in connection


with the Works and for departmental labour and labour of any other properly authorized

authority or statutory body which may be employed at the Site on execution of any work not

included in the Contract or of any Contract which the Municipal Corporation may enter into in

connection with or ancillary to the Works.

5.ab)Patent, Right and Royalties:

The contractor shall save harmless and indemnify the Corporation from and against all claims

and proceedings for or on account of infringement of any Patent rights, design trademark or

name of other protected rights in respect of any constructional plant, machine work, or material

used for or in connection with the Works or any of them and from and against all claims,

proceedings, damages, costs, charges and expenses whatsoever in respect thereof or in

relation thereto. Except where otherwise specified, the contractor shall pay all tonnage and

other royalties, rent and other payments or compensation, if any, for getting stone, sand, gravel,

clay or other materials required for the works or any of them.

5.ac) Production of Vouchers:

The Contractor shall, produce all quotations, invoices vouchers and accounts or receipt etc. to

prove that the materials supplied by him are in conformity with the specifications laid down in

the Contract and the same are brought to the site and utilized on the said works.

5.ad) Employment of local personnel:

The contractor is encouraged to the extent practicable and reasonable to employ staff and

labour with appropriate qualifications from locally or within India available man power.

5.ae) Personnel:

The Contractor shall employ the key personnel named in the schedule of key personnel

(annexure E) or other personnel approved by the Engineer to carry out the functions. The

Engineer will approve any proposed replacement of key personnel only if their qualifications,

abilities and relevant experience are substantially equal to or better than those of the personnel

listed in the schedule.

5. af) Contractor to keep site clear / Clearance of site after completion of works

i) Upon the issue of any Taking over certificate the Contractor shall clear away and remove from

that part of the site to which such Taking-over Certificate relates all contractor’s equipment,

surplus materials, rubbish and temporary works of every kind, and leave such part of the site

and works clean and in a workman like condition to the satisfaction of the Engineer. If the

contractor does not clear the site within 15 days all material will be confiscated and no

compensation shall be paid and the site will be cleared at risk and cost of the Contractor. A

penalty of minimum Rs5000/ per day per site on part thereof shall be levied on the contractor till

the requirements of this clause are complied with satisfaction of the Engineer.

ii) Contractor shall ensure that all vehicles leaving the site shall be cleared adequately to avoid

spreading of dirt, dust and mud in the surrounding premises. Also, no material carried in the


vehicle shall be allowed to spill material over the sides on the roads, pavement, etc. Any non-

compliance will attract penalty as per condition number 14a.

5. ag) Clearance of site after completion of works

i) Upon the issue of any Taking over certificate the Contractor shall clear away and remove from

that part of the site to which such Taking-over Certificate relates all contractor’s equipment,

surplus materials, rubbish and temporary works of every kind, and leave such part of the site

and works clean and in a workman like condition to the satisfaction of the Engineer. If the

contractor does not clear the site within 15 days all material will be confiscated and no

compensation shall be paid and the site will be cleared at risk and cost of the Contractor.

6.Labour:

6.a) Employment of labour:

i)The Contractor shall employ the labour in sufficient numbers to maintain the required rate of

progress and of quality to ensure workmanship, of the degree specified in the Contract and to

the satisfaction of the Engineer. The Contractor shall not employ in connection with the Work

any child who has not completed his 15th year of age. He shall also not employ an adolescent

who has not completed his 18th year unless he is certified fit for work as an adult as prescribed

under clause (b) of sub-section (2) of section 69 of the Factories Act, 1948.

The Contractor shall also see that all the provisions regarding employment of yond persons

covered by the Employment of Children Act, 1933 and the Factories Act, 1948 as amended

from time to time shall be fully complied with. The Contractor shall also see that the provisions

set for under the Minimum Wages Act and contract regulation and abolition Act, 1970 with the

Maharashtra Contract Labour (Regulation and Abolition) Rules 1971 as amended from time to

time are fully complied with by him and shall maintain necessary registers and records for

payment of wages, overtime, etc. made to his workmen as required by the Conciliation Officer

(Central), Ministry of Labour, Government of India, or such other authorized person appointed

by the Central or State Government.

The Contractor shall make his own arrangement for the engagement of all labour local or

otherwise.

The Contractor shall be encouraged to employ, to the extent practicable and reasonable, staff

and labour from sources within India.

The Contractor shall indemnify the Municipal Corporation or any agent, servant or employee of

Municipal Corporation for any lapses on the part of contractor on account of non-compliance of

above referred acts.

ii)Supply of Water : The Contractor shall having regard to local conditions, provide on the site, to

the satisfaction of the Engineer’s representative, an adequate supply of drinking and other water

for the use of Contractor’s staff and work people.

iii) Alcoholic Liquor or drugs:The Contractor shall not otherwise than in accordance with

statutes, ordinances and Government regulation or orders for the time being in force, import,


sell, give, barter or otherwise dispose of any alcoholic liquor or drugs, or permit or suffer any

such importations, sale, gift, barter or disposal of his sub-contractor, agents or employees.

iv) Arms and Ammunitions:The Contractor shall not give, barter or otherwise dispose off to any

person or persons, any arms or ammunitions of any kind or permit or suffer the same as

aforesaid.

v)Festivals and Religious Custom.The Contractor shall in all dealings with labour in his

employment have due regard to all recognized festivals, days of rest and customs religious or

other customs.

vi)EpidemicsIn the event of any out-break of illness of an epidemic nature the contractor shall

comply with and carry out such regulations, orders and requirements as may be made by the

Government or the local medical or sanitary authorities for the purpose of dealing with and

overcoming the same.

vii) Disorderly conducts etc: The Contractor shall at all times take all reasonable precautions to

prevent any unlawful, riotous or disorderly conduct by or amongst his employees and for the

preparation of peace and protection of persons and property in the neighborhood of the works

against the same.

viii)Observance by Sub-contractorsThe Contractor shall be responsible for observance by his

sub-contractors of the foregoing provisions.

ix) Return of Labour etc: The Contractor shall, if required by the Engineer, deliver this to the

Engineer’s Representative, or office, a return in detail in such form and at such intervals as

Engineer may prescribe showing supervisory staff and the number of the several class of labour

from time to time employed by the Contractor on the Site and such information respecting

constructional plant as the Engineer’s representative may require.

x)Safety EngineerThe Contractor shall have on his staff at the Site an officer whose sole task

shall be to deal with matters regarding the safety and protection against accidents of all staff,

labour and Contractor's Equipment. This officer shall be qualified for this work and shall have

the authority to issue instructions and shall take protective measures to prevent accidents.

xi) Burial or Cremation of the Dead The Contractor shall make all necessary arrangements for

the transport, to any place as required for burial or cremation, of any of his expatriate

employees or members of their families who may die in India. The Contractor shall also be

responsible to the extent required by the local regulations, for making any arrangements with

regard to burial or cremation of any of his local employed who may die while engaged upon the

Works.

xii) Work Permits for Foreign Personnel The Government of India maintains a system of strict

regulations concerning the employment and residence of foreign personnel in India.

xiii) Measures Against Insect and Pest Nuisance As soon as practicable after receipt of the

Letter of Acceptance, the Contractor shall ascertain the current requirements of the regulations

from the authorities concerned and shall ensure that such requirements are complied with in all

respects.


xiv) Repatriation of Labour The Contractor shall be responsible for the timely acquisition and

subsequent maintenance of the necessary permits for all of his employees who are required to

work and/or reside in India at any time during the course of the Contract. The Contractor shall

further ensure that all Sub-Contractors employed by him comply with the forgoing requirements

in respect of their employees

6.b) Compliance with Labour Regulation:

During compliance of the contract, the Contractor and his sub-contractors shall abide at all

times by all existing labour enactments and rules made there under, regulations, notifications

and bye laws of State or Central Government or local authority and any other law (including

rules), regulations, bye laws that may be issued under any labour law in future either by the

Stage or the Central Government or the local authority. Salient features of some of the major

labour laws that are applicable to construction industry are given below. The provisions quoted

are only indicative. The contractor should refer the latest labour regulations bye-laws etc. The

Contractor shall keep the Employer indemnified in case any action is taken against the

Employer by the competent authority on account of contravention of any of the provisions of any

Act or rules made there under, regulations or notifications including amendments. The

Employer is caused to pay or reimburse, such amounts as may be necessary to cause of

observe, or for non-observance of the provisions stipulated in the notifications including

amendments if any, on the part of the contractor, the Engineer / Employer shall also have right

to recover from the contractor any sum required or estimated to be required for making good the

loss or damage suffered by the Employer.

The employees of the contractor and the sub-contractor in no case shall be treated as the

employees of the Employer at any point of time.

SALIENT FEATURES OF SOME MAJOR LABOUR LAWS APPLICABLE TO

ESTABLISHMENTS ENGAGED IN BUILDING AND OTHER CONSTRUCTION WORK.

• Workman Compensation Act, 1923:

The Act provides for compensation in case of injury by accident arising out of and during the

course of employment.

• Payment of Gratuity Act, 1972:

Gratuity is payable to an employee under the Act on satisfaction of certain conditions on

separation if an employee has completed 5 years service or more or on death at the rate of

15 days wages for every completed year of service. The act is applicable to all

establishments employing 10 or more employees.

• Employees PF and Miscellaneous Provision Act, 1952:

The Act provides for monthly contributions by the employer plus workers @ 10% or 8.33%.

The benefits payable under the Act are –

• Pension or family pension on retirement or death as the case may be.

• Deposit linked insurance on the death in harness of the worker.

• Payment of PF accumulation on retirement / death, etc.


• Maternity Benefit Act, 1951:

Act provides for leave and some other benefits to women employees in case of confinement

or miscarriage etc.

• Contract labour (Regulation and Abolition) Act, 1970:

The Act provides for certain welfare measures to be provided by the contractor to contract

labour and in case the contractor fails to provide, the same are required to be provided by

the Principal Employers by law. The principal employer is required to take Certificate of

Registration and the Contractor is required to take a License from the designated Officer.

The Act is applicable to the establishment or contractor of principle employer if they employ

20 or more contract labour.

• Minimum Wages Act, 1948:

The Employer is supposed to pay not less than the Minimum Wages fixed by appropriate

Government as per provisions of the act if the employment is a scheduled employment

Construction of buildings, roads, runways are scheduled employments.

• Payment of Wages Act, 1936:

It lays down as to by what date the wages are to be paid, when it will be paid and what

deductions can be made from the wages of the workers.

• Equal Remuneration Act, 1979:

The Act provides for payment of equal wages for work of equal nature to Male & Female

workers and not for making discrimination against Female employees in the matters of

transfers, training and promotions, etc.

• Payment of Bonus Act, 1965:

The Act is applicable to all establishments employing 20 or more workmen. The Act

provides for payments of annual bonus subject to a minimum of 8.33% of wages and

maximum of 200% of wages to employees drawing Rs.35,000/- p.m. or less. The bonus to

be paid to or employees getting Rs.2,500/- p.m. above upto 3,500/- p.m. shall be worked out

by taking wages as Rs.2,500/- p.m. only. The act does not apply to certain establishments.

The newly set up establishments are exempted or five years in certain circumstances.

Some of the State Governments have reduced the employment size from 20 to 10 for the

purpose of applicability of the Act.

• Industrial Disputes Act, 1947:

The Act lays down the machinery and procedure for resolution of industrial disputes, in what

situations a strike or lock-out becomes illegal and what are the requirements for laying off or

retrenching the employees or closing down the establishment.

• Industrial Employment (Standing Orders) Act, 1946:

It is applicable to all establishments employing 1000 or more workmen (employment size

reduced by some of the States and Central Government to 50). The Act provides for laying


down rules governing the conditions of employment by the employer or matters provided in

the Act and get the same certified by the designated Authority.

• Trade Unions Act, 1926:

The Act lays down the procedure for registration of trade unions of workmen and employers.

The trade unions registered under the Act have been given certain immunities from civil and

criminal liabilities.

• Child labour (prohibition and regulation) Act, 1986:

The Act prohibits employment of children below 14 years of age in certain occupation and

processes and provides for regulation of employment of children in all other occupations and

processes. Employment of child labour is prohibited in Building and Construction Industry.

• Inter-State migrant Workmen’s (Regulation of Employment and Conditions of Service) Act,

1979:

The Act is applicable to an establishment which employees 5 or more inter-state migrant

workmen through an intermediary (who has recruited workmen in one state for employment

in the establishment situated in another state). The inter-state migrant workmen, in an

establishment to which this Act becomes applicable, are required to be provided certain

facilities such as housing, medical aid, traveling expenses from home upto the

establishment and back, etc.

• The Building & other Construction Workers (Regulation of Employment and Conditions of

Service) Act, 1996 and the Cess Act of 1996.

All the establishments who carry on any building or other construction work and employ 10

or more workers are covered under this Act. All such establishments are required to pay

cess at rate no exceeding 2% of the cost of construction as may be notified by the

government. The employer of the establishment is required to provide safety measures at

the Building or Construction work and other welfare measures, such as, Canteens, First-Aid

facilities, ambulance, housing accommodation for workers near the workplace etc. The

employer to whom the Act applies has to obtain a registration certificate from the Registering

Officer appointed by the Government.

• The Factories Act, 1948:

The Act lays down the procedure for approval of plans before setting up a factory, health and

safety provisions, welfare, working hours, annual earned leave and rendering information

regarding accidents or dangerous occurrences to designated authorities. It is applicable to

premises employing 10 persons or more with aid of power or 20 or more persons without the aid

of power engaged in manufacturing process.

xvii) E.S.I.C. Act, 1948

The tenderer shall have valid registration certificate under E.S.I.C Act 1948, if the

tenderer/bidder has less than 10(ten) or more than 20(twenty) Employee/persons on his

establishment and work is carried out with the help of

energy. This shall be submitted on undertaking on stamp paper of Rs.100/-.


6.c) Regulation Employment Welfare:

The Contractor, which expression shall include sub-contractor or any such person or group of

persons representing the contractor who are and, required to handle iron and steel materials

shall register themselves as employer with the Mumbai Iron and Steel Labour Board and shall

completely fulfill all the obligatory provisions of the Maharashtra Mathadi, Hamal and other

Manual Workers (Regulation of Employment Welfare Act, 1969) and the Mumbai Iron and Steel

Unprotected Workers (Regulation of Employment and Welfare Scheme, 1970). The

consequences of failure of compliance of any of these provisions will entirely be the liability and

responsibility of the Contractor.


7. Materials, Plant and Workmanship

7.a) Plant and Equipment:

The Contractor shall arrange at his own expense all tools, plant and equipment required for

execution of Works. If required by the Contractor and if available the Municipal Corporation

may supply such of the tools, plant and equipment as are available, to the Contractor at the

rates and terms to be specified by the Engineer. No tools, plant and equipment once brought to

the work site shall be removed without the written permission or order of the Engineer, until he

has certified the completion of the work.

If any Tools, Plants and equipment brought on site, are in the opinion of the Engineer inefficient,

bad or of inferior quality or are unsuited for the Works then such tools, plant and equipment

shall not be used on the Works but shall be removed by the Contractor at his own expense

within twenty four hours after the service of a written order or notice from the Engineer to that

effect and fresh tools, plant and equipment be substituted in lieu of that ordered to be removed

by the Engineer. The Employer will use his best endeavors in assisting the Contractor,where

required, in obtaining clearance through the Customs of Contractor’s equipment, material and

other things required for the Works but shall not be liable to the Contractor for any loss resulting

from clearance being delayed or refused.

7.b) Use of Specification B.I.S.:

In case where no particular specification is given for any article to be used under the

contract, the relevant specification, where on B.I.S. exists, of the Bureau of Indian Standards.

( BIS 1200) shall apply.

The contractor shall execute the whole and every part of the work the most substantial

and workman like manner and both has regards material and every other respect in strict

accordance with specifications. The contractor shall also confirm exactly, fully and faithfully to

the designs, drawings and instructions in writing relating to the work signed by the Engineer In-

charge and lodged in his office and to which the contractor shall be entitled to have access for

the purpose of inspection at such office, or on the site or work during office hours. The

contractor shall be entitled to receive three sets of contract drawings and working drawings as

well as one certified copy of the accepted tender along with the work order free of cost.

7.c) Work to be open to Inspection and Contractor or Responsible agent to be presesnt:


All works under or incourse of execution or executed in pursuance of the contract shall at all

times be open to the inspection and supervision of the Eng-in-charge and his subordinates and

the contractor shall at all times during the usual working hours, at all other times, during the

usual working hours and at all other times at which reasonable notice of the intention of the

Eng-in-charge and his subordinates to visit the works shall have been given to the contractor,

either himself be present to receive orders and instruction or have responsible agent duly

accredited in writing present for that purpose. Order given to the contractors’ duly authorized

agent shall be considered to have the same force and effect as if they had been given to the

contractor himself.

The Engineer and any person authorized by him shall at all reasonable times have access to

the site and to all workshops and places where materials or plant are being manufactured.

Fabricated or prepared for the works and the contractor shall afford every facility for and every

assistance in obtaining the right to such access.

The Engineer shall be entitled, during manufacture, fabrication or preparation to inspect and test

the material and plan to be supplied under the contract. If materials or plant are being

manufactured, fabricated or prepared in workshops or places other than those of contractor, the

contractor shall obtain permission for the Engineer to carry out such inspection and testing in

those workshop or places. Such inspection or testing shall not release the Contractor from any

obligation under the contract.

All works embracing more than one process shall be subject to examination and approval at

each stage thereof and the contractor shall give due notice to the Engineer or his authorized

representative when each stage is ready. In default of such notice, the Engineer shall be

entitled to appraise the quality and extent thereof.

No work shall be covered up or put out of view without the approval of the Engineer or his

authorized representative and the contractor shall afford full opportunity for examination and

measurement of any work which is about to be covered up or out of view and for examination of

foundation before permanent work is placed thereon.

The Contractor shall give due notice to the Engineer or his authorized representative whenever

any such work or foundation is ready for examination and the Engineer or his representative

shall without unreasonable delay, unless he consider it necessary and informs the contractor, in

writing accordingly, attend for the purpose of examining and measuring such work or examining

such foundations. In the event of the failure of the contractor to give such notice he shall, if

required by the Engineer, uncover such work at the Contractor’s expense.

The contractor shall agree with the Engineer on the time and place for the inspection or testing

of any materials of plans as provided in the contract. The Engineer shall give the contractor

reasonable advance notice of his intention to carry out the inspection or to attend the tests. If

the Engineer, or his duly authorized representative, does not attend on the date agreed, the

contractor may, unless otherwise instructed by the Engineer, proceed with the tests, which shall

be deemed to have been made in the presence of the Engineer. The contractor shall forthwith

forward to the Engineer duly certified copies of the test readings. If the Engineer has not

attended the tests, he shall accept the said readings as correct.


If at the time and place agreed the materials or plant are not ready for inspection or testing or if,

as a result of the inspection or testing referred to in this Clause, the Engineer determines that

the materials or plant are defective or otherwise and not in accordance with the contract, he

may reject the materials or plant and shall notify the Contractor thereof immediately. The notice

shall state the Engineer’s objections with reasons. The contractor shall then make good the

defect or ensure that rejected materials or Plant comply with the contract. If the Engineer so

requests, the tests of rejected materials or plant shall be made or repeated under the same

terms and conditions. All costs incurred by the Employer by the repetition of the tests shall after

due consultation with the Employer be determined by the Engineer and shall be recoverable

from the contractor by the Employer and maybe deducted from any sums due or to become due

to the contractor and the Engineer shall notify the contractor accordingly.

The Engineer shall have authority to issue instructions from time to time for (a) the removal from

the site within such time or times as may be specified in the instruction of any materials or plant

which is the opinion of the Engineer, are not in accordance with the contract. (b) the substitution

of proper and suitable materials or plant and (c) the removal and proper re-execution

notwithstanding any previous test thereof or interim payment therefore of any work which in

respect of :

i) materials plant or workmanship or

ii) design by the contractor or for which he is responsible, is not, in the opinion of the Engineer,

in accordance with the contract.

In case of default on the part of the contractor in carrying out such instruction within the time

specified therein or, if non, within a reasonable time, the Employer shall be entitled to employer

and a other persons to carry out the same and all costs consequent thereon or incidental shall,

after due consultation with the Employer, be determined by the Engineer and shall be

recoverable from the contractor by the Employer from any monies due or to become due to the

contractor and the Engineer shall notify the contractor accordingly.

Departmental officers concerned with the works shall have powers to any time to inspect

examine any part of the works and the contractor shall give such facilities as may be required

for such inspection and examination.

The Engineer may delegate inspection and testing of materials or plant to an independent

inspector. For this purpose such independent inspector shall be considered as an assistant of

the Engineer. Notice of such appointment (not being less than 14 days) shall be given by the

Engineer to the Contractor.

7.d) Uncovering and making good:

The Contractor shall uncover any part of the works and / or make opening in or through the

same as the Engineer may from time to time direct for his verification and shall reinstate and

make good such part to the satisfaction of the Engineer, if any such part has been covered up

or put out of view after being approved by the Engineer and is subsequently found on

uncovering to be executed in accordance with the contract, the expenses of uncovering and / or


making openings in or through, reinstating and making good the same shall be borne by the

Corporation except in cases where uncovering etc is ordered by the Engineer as a reasonable

consequence of previously detected defective work or its symptoms suggesting a failure to

comply with the contract. In any other case all such expenses shall be borne by the Contractor.

7.d..i) Notice To Be Given Before Work Is Covered Up

The contractor shall givenot less than ten days’ notice in writing to the Eng-In-Charge or

his subordinate incharge of the work before covering up or otherwise placing beyond the reach

of measurement any work in order that the same may be measured and correct dimension

thereof taken before the same is so covered up or placed beyond the reach of measurements

and shall not cover up or place beyond the reach of measurement any work without the consent

in writing of the Eng-In-Charge or his subordinate incharge of the work, and if any work shall be

covered up or placed beyond the reach of measurement, without such notice having been given

or consent obtained the same shall be uncovered at the contractors expenses, and in default

thereof no payment or allowance shall be made for such work or for the materials with which the

same was executed

7.e) Materials:

• Material to be provided by the Contractor:

All materials to be provided by the Contractor shall be in conformity with the specifications

laid down in the contract and the Contractor shall, furnish proof to the satisfaction of the

Engineer that the materials so comply. Contractor shall produce proof viz. challans, bills,

vouchers, etc. so as to ensure that the material was brought on site and quantities used as

per the norms, specifications, etc.

The Contractor shall, at his own expense and without delay, supply to the Engineer samples

of materials proposed to be used in the Works. The Engineer shall within seven days of

supply of samples or within such further period as he may require and intimated to the

contractor in writing, inform the contractor whether the samples are approved by him or not.

If the samples are not approved the contractor shall forthwith arrange to supply to the

Engineer for approval fresh samples complying with the specifications laid down in the

contract.

The Engineer shall have full powers to require removal of any or all of the materials brought

to site by the Contractor which are not in accordance with the contract specifications or

which does not conform in character or quality to the samples approved by him. In case of

default on the part of the Contractor in removing the rejected materials, the Engineer shall

be at liberty to have them removed by other means. The Engineer shall have full powers to

procure other proper materials to be substituted for rejected materials and in the event of the

Contractor refusing to comply, he may cause the same to be supplied by other means. All

costs, which may attend upon such removal and / or substitution shall be borne by the

Contractor.


Subject as hereinafter provided in Clause 3(a), all charges on account of Octroi, terminal or

sales tax and other duties on material obtained for the works from any source shall be borne

by the Contractor.

The Engineer shall be entitled to have tests carried out as specified in the contract for any

materials supplied by the Contractor other than those for which as stated above, satisfactory

proof has already been produced, at the cost of the contractor and the contractor shall

provide at his expense all facilities which the Engineer may require for the purpose.

If no tests are specified in the contract, and such tests are required by the Engineer the

contractor shall provide all facilities required for the purpose and charges for these tests

shall be borne by the contractor. In case of third party audit, the cost implication has to be

borne by the contractor.

The cost of the materials consumed in test shall be borne by the contractor in all cases

except when otherwise provided. If the materials used on works are found to be sub-

standard in the test, then the same will be removed by the contractor and replaced by good

materials at his cost.

7.f) Stock of Materials required:

The Contractor shall at his own expense provide and furnish himself with sheds and yards in

such situations and in such numbers as, in the opinion of the Engineer are requisite for carrying

out the Works under this contract, and the Contractor shall keep at each of the sheds and yards

a sufficient quantity of materials in stock so as not to delay the carrying out of works with due

expedition and the Engineer and his subordinates shall have free access to the said sheds or

yards at any time for the purpose of inspecting the stock of materials so kept in hand any

material or article, which the Engineer may object to, shall not be brought upon or used in the

work but shall be forthwith removed from the sheds or yards by the contractor at his own cost.

The contractor will however be allowed to use for the above purpose the completed portion of

the buildings if available.

7.g) Photographs of the works:

No photographs of the work or any part there of or equipment employed thereon shall be taken

or permitted by the contractor to be taken by any of his employees or any employees of his

sub-contractor without the prior approval of the Engineer in writing and no such photographs

shall be published or otherwise circulated without the approval of the Engineer in writing.

8.Suspension, Commencement and delays


8.a) Suspension of work:

• The contractor shall, on receipt of the order in writing of the Engineer, suspend the progress

of the Works or any part thereof for such time and in such manner as the Engineer may

consider necessary for any of the following reasons:-

• On account of continued non-compliance of the instructions of the Engineer or any other

default on the part of the contractor, or

• For proper execution of the works or part thereof for reasons other than the default of

the contractor, or

• For safety of the works or part thereof.

The contractor shall, during such suspension, properly protect and secure the works to the

extent necessary and carry out the instructions given in that behalf by the Engineer.

• If the supervision is ordered for reasons (i) and (iii) in sub-para (a) above, the contractor

shall be entitled to an extension of time equal to the period of every such suspension plus a

reasonable time as decided by the Engineer.

If the suspension is ordered for reasons of (i) in sub-para (a) above, the Engineer shall have

powers to suspend the payment under the contract. Such suspension of payment may be

continued until default shall have been rectified.

8.b) Rate of progress:

If for any reason, which does not entitle the Contractor to an extension of time, the rate of

progress of the Works or any Section is at any time, in the opinion of the Engineer, shall so

notify the Contractor who shall thereupon take such steps as are necessary, subject to the

consent of the Engineer, to expedite progress so as to comply with the Time for completion.

The Contractor shall not be entitled to any additional payment for taking such steps. If, as a

result of any notice given by the Engineer under this Clause, the Contractor considers that it is

necessary to do any work at night or on locally recognized days of rest, he shall be entitled to

seek the consent of the Engineer so to do. Provided that if any steps, taken by the Contractor in

meeting his obligations under this Clause, involve the employer in additional supervision costs,

such costs, shall, after due consultation with the Employer, be determined by the Engineer and

shall be recoverable from the Contractor by the Employer, and maybe deducted by the

Employer from any monies due or to become due to the Contractor and the Engineer shall notify

the Contractors accordingly.

8.c) Restriction on Working Hours:

i. No work shall be done between sunset and sunrise or on Sunday or Municipal holidays and

except with the special sanction of the Engineer in writing previously obtained and the

withholding of such sanctions shall be no ground of complaint on the part of the contractor or

cause for compensation to him, or excuse for not completing the work within the contract

period. The period within which the work has to be carried out and completed has been fixed

in terms of this clause with the provision that the total number of hours of work permissible

shall not exceed 48 hours in a week and in no case more than 8 hours on any working day,

the actual time within which the said hours shall be worked being subject to mutual


arrangements with the Contractor at the commencement of the works or from time to time as

may be required and provided that all works shall be stopped for rest and meals for one hour

at about mid-day exclusive of the permissible hours aforesaid for the works.

Though sanction may be accorded to the Contractor to work on days and at times otherwise

normally non-permissible under this Contract, the Contractor shall be required to bear the cost

for such supervision as in the opinion of the Engineer may be necessary at these times. Also he

has to obtain the necessary permission from police for working at night times and otherwise

normally non-permissible times.

It should be distinctly understood that the granting of permission to work extra hours or to

work on Sundays and holidays will be entirely at the discretion of the Engineer and cannot

be claimed by the Contractor as a matter of right.

i. If on the other hand the Engineer requires that the work shall be proceeded with on days

and at times otherwise normally non-permissible under this contract the contractor shall

proceed with the work but he will not be required in such cases to bear the cost of the

Municipal establishment employed at the time.

The contractor at all times during the continuance of this contract shall in all his dealings with

local labour for the time being employed on the works contemplated by this contract have due

regard to all local festivals and religious or other customs and all disputes, matters and

questions arising between the contractor and any of his agent on the one hand and any local

labour on the other hand with respect to any matter or thing in any way connected with this

contract shall be decided by the commissioner whose decision shall be final and binding on all

parties.

8.d) Commencement Time and Extension for Delay:

The time allowed for execution for the works as specified in the contract documents shall be the

essence of the contract. The execution of the works shall commence from the date specified by

the Engineer in writing. If the contractor fails or neglects to commence the execution of the

Works as aforesaid, the Municipal Corporation shall without prejudice to any other right or

remedy will be at liberty to forfeit the security deposit absolutely.

i) Work during Monsoon:In any case where the time prescribed for completion of any work is

exclusive of monsoon period. No new trench work should be started after 15th May and existing

trenches are required to be reinstated by 31st May every year. The site shall be cleared in all

respect including removal of surplus material on or before 10th June of every year. The

monsoon period shall be deemed to be from 10th June to 30th September of the calendar year.

However, if the contractor is permitted by the Engineer to work during any monsoon period, all

such period shall be taken into account for the calculating the contract period on pro-rata F

basis as under –

Effective cost of work done No. of days of

days = during monsoon x contract period


Total cost of contract works

In the event of the contractor failing to comply with this condition, he shall be liable to pay as

compensation as stated in condition no.8e.

ii) Extension of time for Completion: In the event of –

a. force majeure such as acts of God, acts of public enemy, acts of Government, floods,

epidemics, etc., or

b. abnormally bad weather, or

c. serious loss of damage by fire, or

d. civil commotion, local combination of workmen, strike or lockout of any of the traders employed

on the work, or

e. delay on the part of other Contractors or tradesmen engaged by the Employer in executing

Works not forming part of the Contract, or

f. the ordered variations namely the amount or nature of extra or additional work

g. reasons stated in Adverse Physical Obstructions or Conditions, Delay and Disruption to

Progress, or

any other cause which, in the absolute discretion of the Engineer is beyond the Contractor's

control..

Being such as fairly to entitle the Contractor to an extension of the time for completion of the

works, or any section or part thereof, the Engineer shall, determine the amount of such

extension and shall notify the Contractor accordingly.

iii) Contractor to provide notification and detailed particulars: Provided that the Engineer is not

bound to make any determination unless the contractor has –

a) Within 28 days after such event has first arisen notified the Engineer.

b) within 28 days, or such other reasonable time as may be agreed by the Engineer, after such

notification submitted to the Engineer detailed particulars of any extension of time to which he

may consider himself entitled in order that such submission may be investigated at the time

iv) Interim determination of extension:-Provided also that where an event has a continuing effect

such that it is not practicable for the contractor to submit detailed particulars within the period of

28 days referred to in sub clause 8(d), he shall nevertheless be entitled to an extension of time

provided that he has submitted to the Engineer interim particulars at intervals of not more than

28 days and final particulars within 28 days of the end of the effects resulting from the event.

On receipt of such interim particulars, the Engineer shall, without undue delay, make an interim

determination of extension of time and, on receipt of the final particulars, the Engineer shall

review all the circumstances and shall determine an overall extension of time in regard to the

event. In both the cases the Engineer shall make his determination after due consultation with

the Employer and the Contractor and shall notify the Contractor of the determination, with a

copy to the Employer. No final review shall result in decrease of any extension of time already

determined by the Engineer.


8.e) Compensation for delay:

If the Contractor fails to compete the works and clear the site on or before the Contract or

extended date(s) / period(s) of completion, he shall, without prejudice to any other right or

remedy of Municipal Corporation on account of such breach, pay as agreed compensation,

amount calculated as stipulated below (or such smaller amount as may be fixed by the

Engineer) on the contract value of the whole work or on the contract value of the time or group

of items of work for which separate period of completion are given in the contract and of which

completion is delayed for every week that the whole of the work of item or group of items of

work concerned remains uncompleted, even though the contract as a whole be completed by

the contract or the extended date of completion. For this purpose the term ‘Contract Value’

shall be the value of the work at Contract Rates as ordered including the value of all deviations

ordered.

• Completion period for (originally stipulated or as extended) not exceeding 6 months : to the

extent of maximum 1 percent per week.

• Completion period for (originally stipulated or as extended) exceeding 6 months and not

exceeding 2 years: to the extent of maximum ½ percent per week.

• Completion period for (originally stipulated or as extended) exceeding 2 years : to the

extent of maximum ¼ percent per week.

When the delay is not a full week or in multiple of a week but involves a fraction of a week the

compensation payable for that fraction shall be proportional to the number of days involved.

Provided always that the total amount of compensation for delay to be paid this condition shall

not exceed the undernoted percentage of the Contract Value of the item or group of items of

work for which a separate period of completion is given.

i. Completion period (as originally stipulated or as extended) not exceeding 6 months: 10

percent.

ii. Completion period (as originally stipulated or as extended) exceeding 6 months and not

exceeding 2 years : 7½ percent.

iii. Completion period (as originally stipulated or as extended) exceeding 2 years : 5 percent.

The amount of compensation may be adjusted set off against any sum payable to the contractor

under this or any other contract with the Municipal Corporation.

8.f) Action And Compensation Payable In Case Of Bad Work And Not Done As Per

Specifications

All works under or in course of execution or executed in pursuance of the contract, shall at

all times be open and accessible to the inspection and supervision of the Engineer-in-

charge, his authorized subordinates in charge of the work and all the superior officers,

officer of the Vigilance Department of the MCGM or any organization engaged by the


MCGM for Quality Assurance and the contractor shall, at all times, during the usual working

hours and at all other times at which reasonable notice of the visit of such officers has been

given to the contractor, either himself be present to receive orders and instructions or have

a responsible agent duly accredited in writing, present for that purpose. Orders given to the

Contractor’s agent shall be considered to have the same force as if they had been given to

the contractor himself.

If it shall appear to the Engineer-in-charge or his authorized subordinates in-charge of the

work or to the officer of Vigilance Department, that any work has been executed with

unsound, imperfect or unskillful workmanship or with materials of any inferior description, or

that any materials or articles provided by him for the execution of the work are unsound or

of a quality inferior to that contracted for or otherwise not in accordance with the contract,

the contractor shall, on demand in writing which shall be made within twelve months of the

completion of the work from the Engineer-in-Charge specifying the work, materials or

articles complained of notwithstanding that the same may have been passed, certified and

paid for forthwith rectify, or remove and reconstruct the work so specified in whole or in

part, as the case may require or as the case may be, remove the materials or articles so

specified and provide other proper and suitable materials or articles at his own charge and

cost. In the event of the failing to do so within a period specified by the Engineer-in-Charge

in his demand aforesaid, then the contractor shall be liable to pay compensation at the

same rate as under clause 8.e of the contract (for Compensation for delay) for this default.

In such case the Engineer-in Charge may not accept the item of work at the rates

applicable under the contract but may accept such items at reduced rates as the Engineer

in charge may consider reasonable during the preparation of on account bills or final bill if

the item is so acceptable without detriment to the safety and utility of the item and the

structure or he may reject the work outright without any payment and/or get it and other

connected and incidental items rectified, or removed and re-executed at the risk and cost of

the contractor. Decision of the Engineer-in-Charge to be conveyed in writing in respect of

the same will be final and binding on the contractor.

If the penalisation amount exceeds maximum limit with respect to Clause 8.e of Standard

General Conditions of Contract, then a show cause notice shall necessarily be issued to

the contract as to why the contract should not be terminated. The contractor will be liable

for being banned/ deregistered from business dealings with MCGM. This shall be governed

by relative provision in Registration Rules of MCGM and Cl.no.15 of Standard General

Conditions of Contract.

8.g) Completion Certificate:

1) As soon as work is completed, the Contractor shall give notice of such completion to the

Engineer and within 28 (Twenty-eight) days of receipt of such notice the Engineer shall inspect

the Works and shall furnish the Contractor with a certificate of completion indicating (a) the date

of completion, (b) the defects to be rectified by the Contractor, and / or (c) items for which

payment shall be made at reduced rates.


When separate period of completion have been specified for items or groups of times, the

Engineer shall issue separate completion certificates for such items or group of items. No

certificate of completion shall be issued, nor the works be considered to be complete till the

Contractor shall have removed from the premises on which the Works has been executed, all

scaffolding, sheds and surplus materials, except such as required for rectification of defects,

rubbish and all huts and sanitary arrangements required for his workers on the site in

connection with the execution of Works as shall have been erected by the Contractor or the

workmen and cleaned al dirt from all parts of building(s) in , upon or about which the Work

has been executed or of which he may have had possession for the purpose of execution

thereof and cleaned floors, gutters and drains, eased doors and sashes, oiled and fastenings,

labeled the keys clearly and handed them over to the Engineer or his representative and

made the whole premises fit for immediate occupation or use to the satisfaction of the

Engineer. If the Contractor shall fail to comply with any of the requirements of this condition

as aforesaid, on or before the date of completion of works, the Engineer may at the expense

of the contractor fulfill such requirements and dispose of all the surplus materials and rubbish

etc. as he thinks fit and the contractor shall have no claims in respect of any such material

except for any sum actually realized by the sale thereof less the cost of fulfilling the

requirements and any other amount that may be due from the contractor. If the expense of

fulfilling such requirement is more than the amount realizes on such disposal as aforesaid, the

contractor shall forthwith on demand pay such excess.

The contractor’s notice of completion as aforesaid shall have to accompanied with one set of

tracings of final completion drawings of RTF and six bound sets of copies of as built drawings

wherever applicable and as directed by the Engineer, failing which the notice shall be deemed

to have not been issued at all.

2) If at any time before completion of the entire work, items or group of items for which separate

periods of completion have been specified, have been completed, the Engineer with the consent

of the contractor takes possession of any part or parts of the same (any such part or parts being

hereinafter in this condition referred to as ‘the relevant part’) then notwithstanding anything

expressed or implied elsewhere in this contract.

(a) Within 28 days (twenty-eight days) of date of completion of such items or group of items

or possession of the relevant part the Engineer shall issue a completion certificate for

the relevant part provided the contractor fulfills his obligation for the relevant part as in

sub-para (1) above.

(b) The defects liability period in respect of such items and relevant part shall be deemed to

have commenced from the certified date of completion of such items or relevant part as

the case may be.

(c) For the purpose of ascertaining compensation for delay under condition 8ein respect of

any period during which the works are not completed the relevant part shall be deemed

to form a separate item or group, with date of completion as given in the contract or as

extended under condition 8dand actual date of completion as certified by the Engineer

under this condition.


3) If any part of the work shall have been substantially completed and shall have satisfactorily

passed any final test that maybe prescribed under the contract, the Engineer may issue a

certificate of completion in respect of that part of the works before completion of the whole

works and upon the issue of such certificates, the contractors shall be deemed to have

undertaken to complete any outstanding works in that part of the works during the period of

maintenance.

8.h) Works where PERT chart is required alongwith Tender:

The contractor shall along with the tender documents submit a network based on principles of

PERT / CPM wherever applicable. Milestones and pre-requisites should also be highlighted

along with broad estimates for major resources like cement, steel drawings etc. The

Contractors must also specify the minimum resources he will exclusively use for this project.

This will include all equipment and all category of labour.

8.i) Network Schedule & Monthly Progress Reports:

On award of the contract, the Contractor shall submit the time schedule for the Works in the

form of PERT Networks or Bar-chart wherever applicable. The Engineer may approve the

Schedule as submitted or suggest modifications as he thinks necessary. The Contractor shall

modify the chart accordingly and obtain Engineer’s approval.

The schedules shall be prepared in direct relations to the time stated in the contract documents

for completion of items or groups of items of work and or the contract as a whole. It shall

indicate the dates of commencement and completion of various activities of the work and may

be amended as necessary by agreement between the Engineer and the Contractor.

The interim payment (running bill) payable under contract condition 12 (b)shall be paid only after

the network is finally approved by the Engineer.

After the issue of the letter of commencement the Contractor shall finalize the network to the

satisfaction of the Engineer. This network should be detailed with a fixed project start and finish

dates and should contain no activities with duration greater than 28 days. Milestones would be

so determined that at least 10 percent of the events are milestones and no two milestones are

more than 3 months apart.

The finalized network may be amended from time to time, if felt necessary by the Contractor,

with the approval of the Engineer. A fixed sum shall be held in abeyance at the time of the next

interim payment for non-attainment of each milestone in the network and shall be released only

on completion of the work after deducting the compensation for delay if there is contractor’s fault

as per provision in condition 8eand penalty covered under Clause 14a. The fixed sum shall be

Rs.10,000/- for all contracts over Rs.25 lakhs and upto the value of Rs.100 lakhs.

Rs.20,000/- for all contracts over Rs.1 crore and upto the value of Rs.5 crores.

Rs.35,000/- for all contracts over Rs.5 crores and upto the value of Rs.10 crores.

Rs.50,000/- for all contracts over Rs.10 crores.

If the attainment of the milestones is delayed for reason not attributable to the contractors no

moneys will be held in abeyance.


The Contractors will be required to submit the monthly progress reports in the given ‘Monthly

Report Format’ as per Annexure ‘D’ by the 2nd day of the following month to the Engineer with a

copy to the Project Planning and Control Cell. Failure on the part of the Contractor to submit

monthly report in time will attract action as per Clause 14a.

8 j)Management Meetings

Either the Engineer or the contractor may require the other to attend Management meeting.

The business of a management meeting shall be to review the plans for remaining works.

Engineers shall record the business of management meetings and is to provide copies of his

record to those attending the meetings. The responsibility of the parties for actions to be taken

is to be decided by the Engineer either at the management meetings or after the management

meetings and stated in writing to all who attend the meetings.

8 k) Contractors remain liable to pay compensation :

In any case in which any of the powers conferred upon the Engineer In-charge by the relevant

clauses in documents that form a part of contract as exercised or is exercisable in the event of

any future case of default by the Contractor, he is declared liable to pay compensation

amounting to the whole of his security deposit. The liability of the Contractor for past and future

compensation shall remain unaffected.

In the event of the Executive Engineer taking action against these relevant clauses, he may, if

he so desires, take possession of all or any tools and plant, materials and stores in or upon the

work of site thereof or belonging to the Contractor or procured by him and intended to be used

for the execution of the work or any part thereof paying or allowing for the same in account at

the contract rates, or in the case of contract rates not being applicable at current market rates to

be certified by the Executive Engineer, may after giving notice in writing to the Contractor or his

staff of the work or other authorized agent require him to remove such tools and plants,

materials or stores from the premises within a time to be specified in such notice and in the

event of the Contractor failing to comply with any such requisition, the Executive Engineer may

remove them at the contractors expense of sell them by auction or private sell on account of the

Contractor at his risk in all respects and certificate of the Executive Engineer as to the expense

of any such removal and the amount of the proceeds an expense of any such sell be final and

conclusive against the Contractor.

8(l) Extension Of Time In Contracts :

Subject to any requirement in the contract as to completion of any portions or portions of

the works before completion of the whole, the contractor shall fully and finally complete

the whole of the works comprised in the contract (with such modifications as may be

directed under conditions of this contract) by the date entered in the contract or

extended date in terms of the following clauses:

a)Extension attributable to MCGM

(i) Extension Due To Modification: If any modifications have been ordered which

in the opinion of the Engineer have materially increased the magnitude of the work, then such


extension of the contracted date of completion may be granted as shall appear to the Engineer

to be reasonable in the circumstances, provided moreover that the Contractor shall be

responsible for requesting such extension of the date as may be considered necessary as soon

as the cause thereof shall arise and in any case should not be less than 30 days before the

expiry of the date fixed for completion of the works.

(ii) Extension For Delay Due To MCGM: In the event of any failure or delay by the

MCGM to hand over the Contractor possession of the lands necessary for the execution of the

works or to give the necessary notice to commence the works or to provide the necessary

drawings or instructions or any other delay caused by the MCGM due to any other cause

whatsoever, then such failure or delay shall in no way affect or vitiate the contract or alter the

character thereof or entitle the contractor to damages or compensation therefore, but in any

such case, the MCGM may grant such extension(s) of the completion date as may be

considered reasonable.

Note: For extension of time period as governed in (i) and (ii) above, any

modifications in design/drawings, specifications, quantities shall be needed to be

justified with recorded reasons with approval of Ch.Eng. for not anticipating the same

while preparing estimates and draft tender.

(b) Extension Of Time For Delay Due To Contractor : The time for the execution

of the work or part of the works specified in the contract documents shall be deemed to be the

essence of the contract and the works must be completed no later than the date(s) / the

programme for completion of work as specified in the contract. If the contractor fails to complete

the works within the time as specified in the contract for the reasons other than the reasons

specified in above as (a.i) and (a.ii), the MCGM may, if satisfied that the works can be

completed by the contractor within reasonable short time thereafter, allow the contractor for

further extension of time as the Engineer may decide. On such extension the MCGM will be

entitled without prejudice to any other right and remedy available on that behalf, to recover the

compensation as governed by Clause 8(e) of GCC.

For the purpose of this Clause, the contract value of the works shall be taken as value of

work as per contract agreement including any supplementary work order/contract agreement

issued.

Further, competent authority while granting extension to the currency of contract under

Clause (b) of as above may also consider levy of penalty, as deemed fit based on the merit of

the case. Also, the reasons for granting extension shall be properly documented.

9. Defects Liability

9.a) Defect Liability period:


The Contractor is expected to carry out the construction work in Workmen like manner so as to

meet the requirement and specification for the project. It is expected that the Workmanship and

materials will be reasonably fit for the purpose for which they are required.

Defects or defective work is where standard and quality of workmanship and materials as

specified in the contract is deficient. Defect is defined as a failure of the completed project to

satisfy the expressed or implied quality or quantity obligations of the construction contract.

Defective construction works are as the works which fail short of complying with the express

descriptions or requirements of the contract, especially any drawings or specifications with any

implied terms and conditions as to its quality, workmanship, durability, aesthetic, performance or

design. Defects in construction projects are attributable to various reasons.

Some of the defects are structural defects resulting in cracks or collapse of faulty defective

plumbing, inadequate or faulty drainage system, inadequate or faulty ventilation, cooling or

heating systems, inadequate fire systems etc. The defects could be various on accounts of

different reasons for variety of the projects.

The Engineering In charge/Project Officer shall issue the practical completion certificate for the

project. During the Defect Liability Period which commences on completion of the work, the

Engineering In charge shall inform or the contractor is expected to be informed of any defective

works by the Employer’s representative of the defects and make good at contractor’s cost with

an intention of giving opportunity to the contractor of making good the defects appeared during

that period. It is the contractor’s obligation under the contract to rectify the defects that appear

during Defect Liability Period and the contractor shall within a reasonable time after receipt of

such instructions comply with the same at his own cost. The Engineering In charge/Project

Officer shall issue a certificate to that effect and completion of making good defects shall be

deemed for all the purpose of this contract to have taken place on the day named in such defect

liability certificate.

If defective work or workmanship or design have been knowingly covered-up or conceived so as

to constitute fraud, commencement of the Defect Liability Period may be delayed. The decided

period may be delayed until discover actually occurs on at least the defect could have been

discovered with reasonable diligence, whichever is earlier.

It is proposed to have DLP as below:

Dept Type of works DLP

Roads /

Bridge

For cement concrete road/ Mastic

works 5 years

Asphalt work 3 years

Paver Block 3 years


Structural work 5 years

General works 5 years

BM/SIC/HIC General works 3 years

Structural works 5 years

Waterproofing works 5 years

Ward Works All ward level works 2 years

Other Works Pot holes and pre-monsoon bad

patch repair work 1 year

For other

departments HE, WSP, SP, SWD, Garden 3 years

• The above is illustrative. In case of any type of work not covered in above or

any change in DLP, the concerned Ch.Eng. shall stipulate DLP with approval

of concerned DMC/AMC.

• In case of composite works i.e. having combinations of construction activities

of different disciplines, the DLPs shall be approved by AMC.

Also, in case of defect, the Engineer shall give notice to the Contractor of any Defects before

the end of the Defects Liability Period, which begins at. The Defects Liability Period shall be

extended for as long as Defects remain to be corrected. Every time notice of Defect/Defects is

given, the Contractor shall correct the notified Defect/Defects within the duration of time

specified by the Engineer’s notice. The Engineer may issue notice to the Contractor to carry out

removal of defects or deficiencies, if any, noticed in his inspection, or brought to his notice. The

Contractor shall remove the defects and deficiencies within the period specified in the notice

and submit to the Engineer a compliance report.

It is the Completion Stage when the contractor has completed all of the works and fixed all of

the defects that were on the list of issue by Engineer-in-charge. When this happens, the

engineer must issue a ‘Certificate of Completion’. On the issue of ‘Certificate of Completion’, the

‘Defect Liability Period ‘starts. The contractor also must issue a ‘Certificate statement’ as an

acknowledgment to the engineer not later than 14 days after the ‘Certificate of Completion’ has

been issued. During the ‘Defect Liability Period’, the contractor has to obey all written

instructions from the engineer to carryout repairs and fix any defects which appear in the

Permanent Works. If the contractor does not ,due to his own faults finish the repair works or fix


the defects by the end of ‘Defect Liability Period’, the ‘Defect Liability Period’ will continue until

all works instructed by engineer is done.

Unfulfilled Obligations: Notwithstanding the issue of the Defects Liability Certificate the

Contractor and the Employer shall remain liable for the fulfillment of any obligation incurred

under the provisions of the contract prior to the issue of the defects liability certificate is issued

and, for the purposes of determining the nature and extent of any such obligation, the contract

shall be deemed to remain in force between the parties to the contract.

9.b) Liability for defects or imperfections and rectifications thereof:

If it shall appear to the Engineer or to his representative at any time during construction or

reconstruction or during the defects, liability period, that any work has been executed with

unsound, imperfect or unskillful workmanship or that any material or article provided by the

Contractor for execution of thereof the work is unsound or of a quality inferior to that contracted

for, or otherwise, not in accordance with the contract, or that any defect, imperfections or other

faults have appeared in the Work arising out of defective or improper materials or workmanship,

the Contractor shall, upon receipt of notice in writing in that behalf from the Engineer forthwith

rectify or remove or reconstruct the work so specified in whole or part, as the case may require

or, as the case may be and / or remove the materials, or articles so specified and provide other

proper and suitable materials or articles at his own expense notwithstanding that the same may

have been inadvertently passed, certified and paid for, and in the event of his failing to do so

within the period to be specified by the Engineer in his notice aforesaid the Engineer may rectify

or remove and re-execute the Work and / or remove and replace with others the materials or

articles complained of, as the case may be, by others means at the risk and cost of the

Contractor.

In case of repairs and maintenance work, splashes and droppings from whitewashing, painting

etc. shall be removed and surfaces cleaned simultaneously with completion of these items of

work in individual rooms, quarters or premises etc. where the work in the contract. In case the

Contractor fails to comply with requirement of this condition, the Engineer shall have the right to

get the work done by the other means at the risk and cost of the Contractor.

The Engineer shall give three days’ notice in writing to the Contractor before taking such action.

The Engineer reserves the right to decide the rates and prices of the works as executed by

other means at the risk and cost of the Contractor.

The cost and expenses thereby incurred including supervision charges specified in the

Annexure ‘A’ on the works and also such penalty as the Engineer may impose for such wrongful

conduct of the Contractor (which penalty, the Engineer shall be competent to impose and

against the imposition of which or the amount thereof by the Engineer an appeal shall lie only to

the Commissioner within seven days of the order in that behalf of the Engineer and the

decisions of the Commissioner shall be final and binding upon the Contractor) may be deducted

from any money due or to become due to the Contractor, under this or any other contract

between the Contractor and the Municipal Corporation.


9.c) Liability for damages and risks:

A) The Contractor shall be responsible for all risks to the work and shall make good at his own

cost, all loss or damage, whether to the works themselves or to any other Municipal property, or

to the lives, persons, or property of others, from whatsoever cause, arising out of, or in

connection with the works, either during their progress or during the defects liability period, after

completion of work for a period of not exceeding 12 months as per directives of Director of

Insurance, Maharashtra State and this although all reasonable and proper precautions may

have been taken by the Contractor, and in case the Commissioner or the Corporation shall be

called upon to make good any such costs loss or damages, or to pay compensation (including

that payable under the provision of Workmen’s Compensation Act) to any person or persons

sustaining damage as aforesaid by reason of any act or of any negligence or omissions on the

part of the contractor, the amount, which the Commissioner may pay in respect thereof and the

amount of any costs or charges (including law costs and charges) in connection with legal

proceedings which he may incur in reference thereto, shall be charged to the contractor. The

Commissioner shall have full power and right at his own discretion to pay or to defend or

compromise any claim which may be made against the Corporation for damage or in case of

threatened legal proceedings, or in anticipation of legal proceedings being instituted,

consequent on the action or default of the contractor, to take such steps as he may consider

necessary or desirable to ward off or mitigate the effect of such proceedings charging to the

contractor, as aforesaid, any sum or sums of money which he may pay and any expenses,

whether for reinstatement or otherwise which he may incur and the propriety of any payment,

defense or compromise, or of the incurrence of any such expense shall not be called in question

by the contractor.

The contractor shall be held responsible for any obligations, damages and fines etc. arising out

of or in connection with the works either during their progress or during the defects liability

period after completion of work for a period of not exceeding 12 months as per directives of

Director of Insurance, Maharashtra State and shall indemnify the Municipal Corporation or the

Commissioner against them and make good any such damages, fines and dues arising out of

non-compliance of any regulation under the Minimum Wages Act by the contractor which may

devolve on the Corporation or the Commissioner.

The Contractor shall take out a policy as per the provisions of the Workmen’s Compensation Act

for the purpose of ensuring compensation to the workers engaged by them.

B)Extension of Defects Liability:

The provisions of this Clause shall apply to all replacements or renewal of Works carried out by

the Contractor to remedy defects and damages as if the replacements and renewals had been

taken over on the date they were completed.

The Defects Liability Period for the Works shall be extended by a period equal to the period

during which the Works cannot be used by reason of a defect or damage. If only part of the

Works is affected, the Defects Liability Period shall be extended only for that part, however, the

retention money/security deposit/performance guarantee will be refunded only after completion


of Defect Liability/warranty period of total work. In neither case shall the Defects Liability Period

extend beyond 2 years from the date of taking over.

When progress in respect of the Works has been suspended under Clause 5 (u), the

Contractor's obligations under this Clause shall not apply to any defects occurring more than 3

years after the Time for Completion established on the date of the Letter of Acceptance.

C) Inspection Consequent to Renewals/Replacement; If the replacement or renewals are of

such a character as may affect the efficiency of the Works or any portion thereof, the Engineer

may, within one month of such replacement or renewals, give to the Contractor notice in writing,

requiring that such replacement or renewals be offered for inspection in which case such

inspection shall be carried out by the Engineer in receipt of a 21 days notice from the

Contractor, in writing.

These Conditions shall apply to, all the replacements and renewals and to all inspections

occasioned thereby and carried out by the Contractor pursuant to this Clause.

D) Access to the Contractor during Defects Liability Period: Until the expiration of Defects

Liability Period of the Works, the Contractor shall have access, at all reasonable working hours,

at his own risk and expense, for himself or for his duly authorised representatives whose names

shall have previously been communicated, in writing, to the Engineer, to all parts of the Works

for the purpose of inspecting the working thereof and to records of the working and performance

thereof for the purpose of inspecting the same and taking notes there from subject to the

Engineer's approval, which shall not be unreasonably withheld. The Contractor may, at his own

risk and expense, make any test, which he considers desirable, in consultation with the

Engineer and the Employer.

E) Liability of Contractor for damages done in or outside work area :

Compensation for all damages done intentionally or unintentionally by

contractor’s labour whether in or beyond the limits of MCGM property including any

damage caused by spreading the fire shall be estimated by the Engineer In-charge or such

other officer as he may appoint and the estimate of the Engineer in-charge to the decision

of the Dy. Chief Engineer on appeal shall be final and the contractor shall be bound to

pay the amount of the assessed compensation on demand failing which the same will be

recovered from the Contractor as damages or deducted by the Engineer In-charge from

any sums that may be due or become due from MCGM to contractor under this Contract

or otherwise. Contractor shall bear the expenses of defending any action or other legal

proceedings that may be brought to prevent the spread of fire and he shall pay any

damages and costs that may be awarded by the Court in consequence.

9 d) Contractor to search.

The Contractor shall, if required by the Engineer in writing, search under the direction of the

Engineer for the cause of any defect, imperfection or fault appearing during the progress of the

Work or in the period of maintenance. Unless such defect, imperfection or fault shall be one for

which the Contractor is liable under the contract, the cost of the Work carried out by the


Contractor in searching as aforesaid shall be borne by the Corporation. If such defect,

imperfection or fault shall be one for which Contractor is liable as aforesaid, the cost of the work

carried out in searching as aforesaid shall be borne by the Contractor and he shall in such case

repair, rectify and make good such defect, imperfection or fault, at his own expense in

accordance with the provisions of condition no.9 b. and 9 c hereof.

10.Variation:

10.A) Rates for Extra/Excess:

i. For Excess / Savings

• Increase or decrease in “Bill of Quantities” of the bidding documents shall be

termed as “Excess” or “Savings” correspondingly.

• The contractors shall be entitled to the payment of Additional Quantities

required for the completion of activity and works, if the activity increases or

decreases within the permissible limit of 20 %.

The maximum savings in individual item upto 20 % shall be permissible.

• Approval Process


Sr no. Excess Approving authority

1. Upto 5 %. Director (E S & P) / DMC.

2. Beyond 5 % up to 15 %. AMC.

3. Beyond 15 %. Hon. M.C

• In case, the projection of the “Excess” quantity goes beyond 20 % of the “Bill

of Quantities” of the bidding document to complete the work activity and

beyond the “Contract Cost”, then all such cases shall be placed before AMC /

Hon. M.C for administrative sanction before execution of “Excess” quantity.

In all such cases the following exercise shall be worked out

(i)Feasibility of foreclosing the work,

(ii)If, foreclosure is not possible the H.O.D shall justify and record the reasons

in writing.

• For Underground Works

Underground works shall mean the works of foundation of buildings and other

structures, works in sewerage projects, storm water drain, water supply

projects and Hydraulic Engineer.

• The contractors shall be entitled to the payment of Additional Quantities

required for the completion of activity and works, if the activity increases or

decreases within the permissible limit of 25 %.

The maximum savings in individual item up to 20 % shall be permissible.



1. Up to 5 %. Director (E S & P) / DMC.




• For Unforeseen Works

Unforeseen works shall mean the works of bursting / leakages of water

pipelines, settlement of sewage lines / manholes, settlement of storm water

drains in city areas. The contractors shall be entitled to the payment of

Additional Quantities required for the completion of activity and works, if the

activity increases or decreases within the permissible limit of 35 %.

The maximum savings in individual item up to 30 % shall be permissible.



1. Up to 10 %. Director (E S & P) / DMC.



• In no case, accrued savings beyond 30 % of all individual items of the “Bill of

Quantities” of the bidding document shall be allowed to meet the cost of Extra

/ Excess / Fair items without altering / modifying or damaging the scope of

work and without balancing the phase works.

ii. For Extra Items

This shall mean additional or substituted items of work activity not included in the

“Bill of Quantities and Rates”, however such item of work are in the prevailing

“Unified Schedule of Rates” of MCGM.

• The total cost of extra items shall be permissible up to 5% of the “Contract

Cost”.

• These extra items shall be paid as per the rates of prevailing “Unified

Schedule of Rates” of MCGM at the time of tender at rebate quoted by the

contractor on contract amount or at par in case of premium quoted by the

contractor on contract amount.

iii. For Fair Items


This shall mean additional or substituted items of work activity not included in

the “Bill of Quantities and Rates”, and even not existing in the “Unified Schedule of

Rates” of MCGM at the time of tender.

• The total cost of fair items including extra items shall be permissible up to 5

% of the “Contract Cost”.

• These fair items shall be got approved by the committee framed. The

engineer in charge shall work out these fair items at fair and reasonable

market rates on the basis of material, labour and operations of construction

equipment required to execute the item and allowing 15 % to cover profits

and overhead charges on the same lines of rate analysis prepared for the

items that are in “Unified Schedule of Rates” of MCGM.

In all cases covered above in respect of A, B and C, the proposals shall

be routed through C.A (Finance) / C.A (WSSD).

10.b) Reimbursement refund on variation of price of labour and materials:

The Contractor shall be reimbursed or shall refund to the Corporation as he case may be the

variation in the value of the work carried out from time to time, depending on whether the prices

of material and labour as a whole rise or fall, and the method adopted for such computations

shall be as given below, it being clearly understood that the contractor shall have no claim for

being reimbursed on the ground that the price of a particular material or group of materials have

risen beyond the limits of the presumptions made in the following paras, however, no price

variations shall be made applicable for contracts upto 12 months:

A)Controlled materials: Price variations shall be permitted in respect of these materials the price

level of which is controlled by the Government or its agency. The rate ruling on the date of

submission of the tender shall be considered as the basic price of such material for adjustment.

Any variation in this rate shall be considered for reimbursement to the contractor or refund to be

claimed from the contractor as the case may be. The contractor shall, for the purpose of

adjustment submit in original the relevant documents from the suppliers.

B) Labour and other materials: For the purpose of this contract and for allowing reimbursement

of refund on account of variation of prices of (i) labour, and (ii) materials other than materials

mentioned in 10a above, computation will be based on the formula enunciated below which is

based on the presumptions that :

i) The general price level of labour, rises or falls in proportion to the rise or fall of consumer

price index number 9 (general) for working class in Mumbai.

ii) The general price level of materials rises or falls in proportion to rise or fall of whole-sale

price index as published by ‘Economic Adviser to Govt. of India’.


iii) And that the component of labour is to the extent of 30 percent of 88 percent and the

component of materials is to the extent of 70 percent of 88 percent of the value of the work

carried out. The remaining 12 percent being the presumptive profit of the contractor.

a) Formula for Labour component:

VL = (0.88 R) x 30 x ( I – IO)

100 IO

b) Formula for Material component :

VM = (0.88 R x 70 - C) x (W – WO)

100 WO

Where –

VL = Amount of price variation to be reimbursed or claimed as refund on account of general

rise or fall of index referred to above.

I = Consumer Price Index number of working class for Mumbai (declared by the Commissioner

of Labour and Director of Employment, Mumbai) applicable to the period under reference

(base year ending 2004-05 as 100 i.e. new series of indices).

IO = Consumer price index number for working class for Mumbai (declared by the

Commissioner of labour and Director of Employment, Mumbai) prevailing, on the day of 28

days prior to the date of submission of the tender.

VM = The amount of price variation to be reimbursed or claimed as refund on account of

general rise or fall of wholesale price index for period under reference.

W = Average wholesale price index as published by Economic Adviser to Govt. of India

applicable to the period under reference.

WO = Wholesale price index as stated above prevailing on the day of 28 days prior to the date

of submission of the tender.

R = Total value of the work done during the period under reference as recorded in the

Measurement Book excluding water charges and sewerage charges but including cost of

excess in respect of item upto 50 percent as stated in Sub Clause 10 (a)Aand cost of extra

items and provisional items of work where the rate is based on Sub Clause 10 (a)B (i)&(ii).

C = Total value of Controlled materials used for the works as recorded in Measurement Book

and paid for at original basic rate plus the value of materials used .

i) The quantity of the Controlled material adopted in working out the value of ‘C’ shall be

inclusive of permitted wastages as / if mentioned in specifications.

ii) The basic rate for the supply of controlled material shall be inclusive of all the components of

cost of materials excluding transport charges incurred for bringing the material from place of

delivery to the site.


Computations based on the above formula will be made for the period of each bill separately

and reimbursement will be made to (when the result is plus) and refund will claimed from (when

the result is minus) the contractor’s next bill. The above formulae will be replaced by the

formulae in Annexure-I as and when mentioned in special conditions of contract

The operative period of the contract for application of price variation shall mean the period

commencing from the date of commencement of work mentioned in the work order and ending

on the date when time allowed for the work order and ending on the date when time allowed for

the work specified in the contract for work expires, taking into consideration, the extension of

time, if any, for completion of the work granted by Engineer under the relevant clause of the

conditions of contract in cases other than those where such extension is necessitated on

account of default of the contractor.

The decision of the Engineer as regards the operative period of the contract shall be final and

binding on the contractors.

iii) Where there is no supply of controlled items to contractor the component ‘C’ shall be taken

as zero.

C) Adjustment after completion: If the Contractor fails to complete the works within the time for

completion prescribed under Clause 8(d), adjustment of prices thereafter until the date of

completion of the works shall be made using either the indices or prices relating to the

prescribed time for completion, or the current indices or prices whichever is more favorable to

the employer, provided that if an extension of time is granted pursuant to condition 8 (d), the

above provision shall apply only to adjustments made after the expiry of such extension of time.

D) Price variation will be calculated similarly and separately for extra items and / or excess

quantities and provisional sums calculated under Sub Clause 10 (b)A (i)&(ii) and Sub Clause 10

(b) B(ii) based on the above formula/formulae in Annexure-I as and when mentioned in Special

conditions of contract; IO and WO being the indices applicable to the date on which the rates

under Sub Clause 10 (a)A (i)&(ii) and Sub Clause 10 (a) B(iii) are fixed. No price variation

shall be admissible for FAIR items created during execution.

E) Maximum Price Variation shall be as follows:

Time Period of Project Maximum limit of Price

Variation

Up to 12 months No variation allowed

Above12 months to 24

months

5%

Above 24 months 10%

*Approval of AMC/MC shall be obtained before invitation of tender in case of any

changes in above.

Price Variation during Extended Period of Contract :

(i) Extension Due To Modification & Extension for delay due to MCGM :

The price variation for the period of extension granted shall be limited to the amount

payable as per the Indices in case the indices increases or decreases, above/below the


indices applicable, to the last month of the original or extended period vide

clause8(l)(a)(i) and (ii) of standard GCC

(ii) Extension Of Time For Delay Due To Contractor :

(a) The price variation for the period of extension granted shall be limited to the amount

payable as per the Indices in case the indices increase, above the indices applicable, to the

last month of the original completion period or the extended period vide above clause.8(l)(b)

of standard GCC. However, the price variation shall not be paid in any case for the

extended period on account of delay due to contractor.

(b) The price variation shall be limited to the amount payable as per the indices, in case the

indices decrease or fall below the indices applicable, to the last month of original / extended

period of completion period vide above clause 8(l)(b) of standard GCC, then lower indices

shall be adopted.

(iii) Extension of Time For Delay due to reasons not attributable to MCGM and Contractor

(Reference Cl.8(d) of Standard GCC):

The price variation for the period of extension granted shall be limited to the amount

payable as per the Indices in case the indices increases or decreases, above/below the

indices applicable, to the last month of the original period. Also, the reasons for granting

extension shall be properly documented.

Note: Price variation shall not be admissible for the FAIR items created during

execution.

11. Measurements:

11.a) Records and Measurement:

The Engineer shall except as otherwise stated ascertain and determine by measurement the

value in accordance with the Contract of work done in accordance therewith.

All items having a financial value shall be entered in measurement book, level book etc. as

prescribed by the Municipal Corporation so that a complete record is obtained of all the Works

performed under the Contract.

Measurements shall be taken jointly by the Engineer or his authorized representative and by the

Contractor or his authorized representative. Before taking measurements of any work the

Engineer or the person deputed by him for the purpose shall give a reasonable notice to the

Contractor. If the Contractor fails to attend or send an authorized representative for

measurement after such a notice or fails to countersign or the objection within a week from the

date of measurement, then in any such event measurements taken by the Engineer or by the

person deputed by him shall be taken to be correct measurements of the works and shall be

binding on the Contractor.

The Contractor shall, without any extra charge, provide assistance with every appliance and

other things necessary for measurements.


Measurements shall be signed and dated by both parties each day (of taking measurement) on

the site on completion of measurement.

11.b) Method of Measurement:

Except where any general or detailed description of the work in bills of quantities or schedule of

works / items / quantities expressly shown to the contrary, bills of quantities shall be deemed to

have been prepared and measurements shall be taken in accordance with the procedure set

forth in the schedule of rates / specifications notwithstanding any provision in the relevant

standard Method of Measurement or any general or local custom. In the case of items which

are not covered by the schedule of rates / specifications, measurement shall be taken in

accordance with the relevant Standard Method of Measurement issued by Bureau of Indian

Standards.( BIS 1200)

12.Payments, Tax and Claims:

12.a) Provisional sum and Advances:

1. ‘Provisional sum’ means a sum included in the contract and so designated in the Bill of

Quantities for the execution of work or supply of goods, materials or services or for

contingencies, which sum may be used, in whole or in part, or not at all, at the direction and

discretion of the Engineer. The contract price shall include only such amounts in respect of

the work, supply or service to which such provisional sum relate as the Engineer shall

approve or determine in accordance with this clause.

2. In respect of every provisional sum the Engineer shall have power to order to execute the

work, including goods, materials or services to be supplied by the contractor. The contract

price shall include the value of such work executed or such goods, materials or services

supplied determined in accordance with Sub Clause 10 b.

The contractor shall produce all quotations, invoices, vouchers and accounts or receipts in

connection with expenditure in respect of provisional sums.

The Corporation will make advance to the contractor for the works in two installments.

The first installment shall be equal to 5% of the contract price. The payment of the first

installment of loan be due after (i) execution of the form of agreement by the parties thereto. (ii)

payment of Security Deposit by the Contractor and (iii) Submitting the Bank Guarantee by the


Contractor from a Bank specified in the tender for an amount equal to 7% (with includes 2%

extra for the interest charges) of the Contract price. The first installment of advance loan shall

be paid to the Contractor within 28 days after fulfilling all the above requirements under sub

items (i) to (iii).

Payment of second installment of the advance mobilization loan upto 5 (five) percentage of the

Contract price will be due within a period of 28 days from completion preliminary site

establishment works such as construction of access roads to site, Engineer’s office,

Contractor’s site office, Stores, Workshop sheds, etc. to the satisfaction of the Engineer.

After certification by the Engineer that the preliminary works are completed satisfactorily, the

second installment will be released after the Contractor submits the Bank Guarantee from a

Bank acceptable to the Corporation for an amount equal to7% (which includes 2% extra for

interest charges) of the Contract price.

Bank Guarantee shall be submitted in the approved prescribed form. The Bank Guarantee/s for

the Advance Mobilization Loan should be valid till the full recovery advance is made.

The Contractor shall use the advance payment only towards expenses for materials, preliminary

site establishments works, and construction equipment and to meet expenses required

specifically to carry out the works.

The above advance shall bear simple interest at 12% per annum. The interest on the amounts

paid as advance is chargeable from the date the amount is paid.

RECOVERY OF ADVANCE :

Recovery of advance paid and interest against it aforesaid, shall be made by deductions from

the on account of payments referred to in condition no.12 (b) in suitable percentage in relation

to the progress as fixed by the Engineer so that all sums with interest shall be fully recovered by

the time the work amounting to nearly 80 percent of the contract is completed. If the amount

payable under any interim bill is not sufficient to cover all deductions to be made on this account

and other sums deductible there , the balance outstanding shall be deducted from subsequent

bills as may be necessary.

12.b) Interim Payment :

Interim bills shall be submitted by the Contractor from time to time (but at an interval of not less

than one month) for the works executed. The Engineer shall arrange to have the bill s verified

by taking or causing to be taken, where necessary, the requisite measurement of work.

Payment on account for amount admissible shall be made on the Engineer certifying the sum to

which the Contractor is considered entitled by way of interim payment for all the work executed,

after deducting there from the amount already paid, the security deposit / retention money and

such other amounts as may be deductible or recoverable in terms of the contract.

On request, the contractor will be paid upto 75 percent of the value of the work carried out as an

adhoc payment in the first week of next month after deducting there from recoveries on account


of advances, interest, retention money, income tax etc. The balance payment due will be paid

thereafter.

No interim payment will be admitted until such time the Contractor have fully complied with the

requirement of the Condition no.8 (h) and 8 (i) concerning submission and approval of Network

Schedule for the works, as detailed in Condition 8 (i). A fixed sum shall be held in abeyance at

the time of next interim payment for non-attainment of each milestone in the network and shall

be released only on attainment of the said milestone.

An interim certificate given relating to work done or material delivered may be modified or

corrected by a subsequent interim certificate or by the final certificate. No certificate of the

Engineer supporting an interim payment shall of itself be conclusive evidence that any work or

materials to which it relates is / are in accordance with the contract.

12.c) Payment on intermediate certificate to be regarded as advances :

No payment shall be made for any work estimated to cost less than Rupees One Thousand till

after the whole of work shall have been completed and the certificate of completion given. But

in the case of works estimated to cost more than Rs. One Thousand, the contractor shall on

submitting a monthly bill therefor be entitled to receive payment proportionate to the part of the

work than approved and passed by the Engineer In-charge, whose certificate of such approval

and passing of the sum so payable shall be final and conclusive against the contractor. All such

intermediate payments shall be regarded as payments by way of advance against the final

payments only and not as payments for work actual done and completed and shall not preclude

the Engineer In-charge from requiring any bad, unsound, imperfect or unskillful work to be

removed or taken away and reconstructed or re-erected nor shall any such payment be

considered as an admission of the due performance of the contract or any part thereof in any

respect or the offering of any claim not shall it conclude, determine or effect in any other way,

the powers of the Engineer In-charge as to the final settlement and adjustment of the accounts

or otherwise, or in any other way vary or effect the contract. The final bill shall be submitted by

the Contractor within one month of the date fixed for the completion of the work otherwise the

Engineer In-charge’s certificate of the measurements and of the total amount payable for the

work shall be final and binding on all parties.

12.d) No interest for delayed payments due to disputes, etc:

It is agreed that the Municipal Corporation of Greater Bombay or its Engineer or Officer shall not

be liable to pay any interest or damage with respect of any moneys or balance which may be in

its or its Engineer’s or officer’s hands owing to any dispute or difference or claim or

misunderstanding between the Municipal Corporation of Greater Bombay or its Engineer or

Officer on the one hand and the contractor on the other, or with respect to any delay on the part

of the Municipal Corporation of Greater Bombay or its Engineer or Officers in making periodical

or final payments or in any other respect whatever.

It is distinctly understood and agreed between the parties hereto that payment for work already

executed by the Contractor is not a condition precedent under this contract for the execution of

the remaining work.


12.e) Receipts to be signed in firm’s name by any one of the partners:

Every receipt for money which may become payable or for any security which may become

transferable to the Contractor under these present shall, if signed in the partnership name by

any one of the partners, be a good and sufficient discharge to the Commissioner and Municipal

Corporation in respect of the money or security purporting to be acknowledged thereby, and in

the event of death of any of the partners during the pendency of this contract, it is hereby

expressly agreed that every receipt by any one of the surviving partners shall, if so signed as

aforesaid, be good and sufficient discharge as aforesaid provided that nothing in this clause

contained shall be deemed to prejudice or effect any claim which the Commissioner or the

Corporation may hereafter have against the legal representatives of any partners so dying or in

respect of any breach of any of the conditions thereof, provided also that nothing in this clause

contained shall be deemed prejudicial or affect the respective rights or obligations of the

Contractors and of the legal representatives of any deceased Contractors interest.

12.f) Overpayment and underpayment:

Whenever any claim for the payment of a sum to the Municipal Corporation rises out of or under

this contract against the Contractor the same may be deducted by the Municipal Corporation

from any sum then due or which at any time thereafter may become due to the Contractor under

this contract and failing that under any contract with the Municipal Corporation or from any other

sum due to the Contractor from the Municipal Corporation (which may be available with the

Municipal Corporation) or from his security deposit / retention money, or he shall pay the claim

on demand.

The Municipal Corporation reserves the right to carry out post payment audit and technical

examination of the final bill including all supporting voucher, abstracts etc. The Municipal

Corporation further reserves the right to enforce recovery of any over payment when detected.

If as a result of such audit and technical examination any overpayment is discovered in respect

of any work done by the Contractor or alleged to have been done by him under the Contract, it

shall be recovered by the Municipal Corporations from the Contractor by any or all of the

methods prescribed above or if underpayment is discovered the amount shall be duly paid to

the Contractor by the Municipal Corporation.

Provided that the aforesaid right of the Municipal Corporation to adjust overpayment against

amount due to the Contractor under any other contract with Municipal Corporation shall not

extend beyond the period of five years from the date of payment of the final bill or in case the

final bill is a ‘Minus’ bill, from the date of the amount payable by the Contractor under the ‘Minus’

bill is communicated to the Contractor. However, to adjust overpayment/recovery from the

contractor MCGM reserves the rights to recover these payments at any point of time against

any other contract with Municipal Corporation and shall not be limited to any prescribed time

limits

Any amount due to the Contractor under this contract for underpayment may be adjusted

against any amount then due or which may at any time thereafter become due before payment

is to the Contractor, from him to Municipal Corporation on any other contract or account

whatsoever.


12.g) Payment of final bill:

Final joint measurement alongwith the representatives of the contractor should be taken

recorded and signed by the Contractors. Contractors should submit the final bill within 1 month

of physical completion of the work.

If the contractor fails to submit the final bill within 1 month, the MCGM staff will prepare the final

bill based on the joint measurement within next 3 months.

Engineer’s decision shall be final in respect of claims for defect and pending claims against

contractors.

No further claims should be made by the Contractor after submission of the final bill and these

shall be deemed to have been waived and extinguished. Payment of those items of the bills in

respect of which there is no dispute and of items in dispute, for quantities and rates as approved

by the Commissioner shall be made within a reasonable period as may be necessary for the

purpose of verification etc.

After payment of the final bill as aforesaid has been made, the contractor may, if he so desires,

reconsider his position in respect of a disputed portion of the final bills and if he fails to do so

within 84 days, his disputed claim shall be dealt with as provided in the contract.

A percentage of the retention money, over and above the actual retention money as indicated

below shall be held back from payments till the finalization of final bill to be submitted as per

above and will be paid within 30 days of acceptance of the final bill.

Sr.no. Amount of Contract Cost Minimum Payable Amount in final bill

1 Upto Rs.5 Crs. Rs.10 Lacs or final bill whichever is more

2 Upto Rs.25 Crs. Rs.1 Crore or final bill amount whichever is

more

3 Upto Rs. 50 Crs. Rs.2 Crores or final bill amount whichever is

more

4 Upto Rs.100 Crs. Rs.4 Crore or final bill amount whichever is

more

5 More than Rs.100 Crs.. Rs.7 Crore or final bill amount whichever is

more

The contractor have to submit the bill for the work carried out within 15 days from the date of

completion of the work to the respective executing department. If the contractor fails to submit

their bills to concerned executing department, penalty or action as shown below will be taken for

each delayed bill:-

After 15 days from the date of

completion/running bill upto certain date, upto

Equal to 5% of bill amount


next 15 days i.e. upto 30 days

Next 15 days upto 45 days from the date of

completion/running bill upto specified date

Equal to 10% of bill amount

If not submitted witin 45 days from the date of

completion/ R.A. bill

Bill will not be admitted for payment.

12.h) Income-Tax:

The Contractor shall pay Indian Income-Tax on all payments made to him under the Contract,

other than reimbursements made to him by the Corporation to cover payment by Contractor of

minor custom duties, etc. or any other payment which the contractor may make on the

Corporation’s behalf. Under the provisions of Sec. 194-c of the Indian Income Tax Act, the

Corporation is required to deduct Tax with surcharge, if applicable, at source at prevailing rates

from the gross amount of each bill submitted. Any expatriate site staff or staff not normally

residents of India, employed by the Contractor shall pay personal Income Tax on all money

earned and paid in India. The contractor shall perform such duties in regard to such deductions

thereof as may be imposed on him by such laws and regulations.

12.i)Currency of Payment:

The Tenderer shall indicate the tender prices in Indian Rupees.

12.j) Taxation Payments of Bills and other claims:

Regarding taxation the prices quoted by the Contractor shall include all customs duties, import

duties, excise duties, business taxes, income and other taxes that may be levied in accordance

to the laws and regulation in force as of the date 28 days prior to dead line for submission of

tenders on the Contractor’s Equipment materials and supplies (Permanent, temporary and

consumables) to be used on or furnished under the contract and on the services to be

performed under the contract. Nothing in the contract shall relieve the contractor from his

responsibility to pay any tax that may be levied in the Employer’s country on profits made by

him in respect of the contract.

The contractor shall perform such duties in regard to such deductions thereof as may be

imposed on him by such laws and regulations.

All charges on account of Octroi, terminal or Sales Tax and other duties on material obtained for

the works from any source including the tax applicable as per Maharashtra Sales Tax Act on the

transfer of property in the goods involved in the execution of works contract (re-enacted) Act,

1991 etc. shall be borne by the Contractor.

Except as otherwise specifically provided in the contract, the contractor shall be liable and

responsible for the payment, of all taxes, such as excise duty, custom duty, sales tax, Value

Added Tax including the purchase tax, consignment tax, work contract tax, service tax, entry tax

or any other similar tax in the state concerned, turnover tax, toll tax, octroi charges, royalty,


labour cess, levy and other tax(es) or duty(ies) which may be specified by local/state/ central

government from time to time on all material articles which may be used for this work. The rates

quoted by him in the tender in bill of quantities shall be inclusive of all taxes, duties, levies etc.

Under the provisions of the Maharashtra Sales Tax Act, the Employer is required to deduct

“Work Contract Tax” at source at the rates prevailing at the time of payments.

The payment of bills and other claims arising out of the contract will be made by

RTGS/NEFT/CBS/ECS/Cheque in the name of Contractors payable to the account and Name of

Bank informed by the successful contractors. Successful Tenderers, therefore, have to furnish

the information as regards, the Name and complete address of their Bank, its branch and their

Bank Account no. etc. They will also have to submit fresh information when there is any change

in this regard.

12.K) Submissions of final completion drawings:

On completion of the work, the contractors shall furnish wherever applicable free of cost 1 set of

R.T.F of final completion drawings and 6 bound sets of copies of drawings, showing all the

details checked and signed by the Engineer within one month of completion of works. The

payment of final bill shall be made to the contractors after receipt of above sets. In case the

contractor fails to submit the completion drawings, compensation at the rate of Rs.5000/- per

drawing or minimum Rs 50,000 whichever is more shall be recovered from the final bills.


13. Settlement of Disputes:

13.a) Termination of contract for death:

If the Contractor is an individual or a proprietary concern and the individual or the proprietor dies

and if the Contractor is a partnership concern and one of the legal representative of the

individual Contractor or the proprietor of the proprietary concern and in case of partnership, the

surviving partners, are capable of carrying out and completing the contract, the Commissioner

shall be entitled to cancel the contract as to its uncompleted part without the Corporation being

in any way liable to payment of any compensation to the estate of the deceased Contractor and

or to the surviving partners of the Contractor’s firm on account of the cancellation of the

contract. The decision of the Commissioner that the legal representative of the deceased

Contractor or surviving partners of the Contractor’s firm cannot carry out and complete the

contract shall be final and binding on the parties. In the event of such cancellation the

Commissioner shall not hold estate of the deceased Contractor and or surviving partners of the

Contractor’s firm liable in damages for not completing the contract.

13.b) Urgent Works:

If any Urgent Work (in respect whereof the decision of the Engineer shall be final and binding)

becomes necessary and the Contractor is unable or unwilling at once to carry it out, the

Engineer may be his own or other work people, carry it out as he may consider necessary. If

the urgent work shall be such as the Contractor is liable under the contract to carry out at his

expense all expense incurred on it by the Municipal Corporation shall be recoverable from the

Contractor and be adjusted or set off against any sum payable to him.

13.c) Foreclosure of contract in full or in Part:


If at any time after acceptance of the tender the Commissioner shall decide to abandon or

reduce the scope of the works or any part of the works to be carried out, he shall inform the

Contractor in writing to that effect and the Contractor shall have no claim to any payment or

compensation or otherwise whatsoever, on account of any profit or advantage which he might

have derived from the execution of the works in full but which he did not derive in consequence

of the foreclosure of the whole or part of the works.

The Contractor shall be paid at the contract rates full amount of works executed at site, and in

addition reasonable amount as certified by the Engineer for the value of such Material (which

material thereupon become the property of the Corporation) and also such further allowances

as the Engineer may think reasonable and fair in respect of (a) any expenditure incurred by the

contractor towards preliminary works etc. and (b) other reasonable and proper engagement the

contractor may have entered into for carrying out the work, (c) such compensation as

considered equitable under the circumstances.

13.d) Settlement of Disputes:

If any dispute or differences of any kind whatsoever other than those in respect of which, the

decision of any person is, by the Contract, expressed to be final and binding) shall arise

between the Employer and the Contractor or the Engineer and the Contractor in connection with

carrying out of the Works (Whether during the progress of the Works or after their completion

and whether before or after the termination, abandonment or breach of the Contract) it, the

aggrieved party may refer such dispute within a period of 7 days to the concerned Addl.

Municipal Commissioner who shall constitute a committee comprising of three officers i.e.

concerned Deputy Municipal Commissioner or Director (ES&P), Chief Engineer other than the

Engineer of the Contract and concerned Chief Accountant. The Committee shall give decision in

writing within 60 days.

Appeal on the Order of the Committee may be referred to the Municipal Commissioner within 7

days. Thereafter the Municipal Commissioner shall constitute a Committee comprising of three

Addl. Municipal Commissioners including Addl. Municipal Commissioner in charge of Finance

Department. The Municipal Commissioner within a period of 90 days after being requested to do

so shall give written notice of committee’s decision to the Contractor. Save as herein provided

such decision in respect of every matter so referred shall be final and binding upon both parties

until the completion of the works, and shall forthwith be given effect to by the Contractor who

shall proceed with the works with due diligence, whether he requires arbitration as hereinafter

provided or not. Ifthe Commissioner has given written notice of the decision to the Contractor

and no Claim to arbitration has been communicated within a period of 90 days from receipt of

such notice the said decision shall remain final and binding upon the Contractor.

13.e) Arbitration and Jurisdiction:

If the Commissioner shall fail to give notice of the decision as aforesaid within a period of 90

days after being requested as aforesaid, or if the Contractor be dissatisfied with any such


decision, then and in any such case the Contractor may within 90 days after receiving notice of

such decision or within 90 days after the expirations of the first named period of 90 days(as the

case may be) require that the matter or matters in dispute be referred to arbitration as

hereinafter provided. All disputes or differences in respect of which the decision (if any) of the

Commissioner has not become final and binding as aforesaid shall be finally settled by

arbitration as follows:

Arbitration shall be effected by a single arbitrator agreed upon the parties. The arbitration shall

be conducted in accordance with the provisions of the Arbitration Act, 1996 or any statutory

modifications thereof, and shall be held at such place and time within the limits of Brihan

Mumbai as the arbitrator may determine. The decision of the arbitrator shall be final and binding

upon the parties hereto and the expense of the arbitration shall bepaid as may be determined

by the arbitrator. Performance under the Contract shall, if reasonably be possible, continued

during the arbitration proceedings and payment due to the Contractor by the Employer shall not

be withheld unless they are the subject matter of arbitration proceedings. The said arbitrator

shall have full power to open up, review and revise any decision, opinion, direction, certification

or valuation of the Commissioner and neither party shall be limited in the proceedings before

such arbitrator to the evidence or arguments put before the Commissioner for the purpose of

obtaining his said decision. No decision given by the Commissioner in accordance with the

foregoing provisions shall disqualify him from being called as a witness and giving evidence

before the arbitrator on any matters whatsoever relevant to the disputes or difference referred to

the arbitrator as aforesaid.

All awards shall be in writing and for claims equivalent to 5,00,000 or more such awards shall

state reasons for amounts awarded. The expenditure of arbitration shall be paid as may be

determined by arbitrator.

In case of any claim, dispute or difference arising in respect of a contract, the cause of action

thereof shall be deemed to have arisen in Mumbai and all legal proceedings in respect of any

claim, dispute or difference shall be instituted in a competent court in the City of Mumbai only

13.f) Details to be Confidential:

The Contractor shall treat the details of the Contract as private and confidential, save in so far

as may be necessary for the purposes thereof, and shall not publish or disclose the same or any

particulars thereof in any trade or technical paper or elsewhere without the previous consent in

writing of the Employer or the Engineer. If any dispute arises as to the necessity of any

publication or disclosure for the purpose of the contract the same shall be referred to the

Employer whose determination shall be final.

13.g)Cancellation of contract in full or in part:

If the Contractor:

• At any time makes default in proceeding with the work with due diligence and continues to

do so after notice in writing of fourteen days from the Engineer, or


• Commits default in complying with any of the terms and conditions of contract and does not

remedy it within fourteen days after a notice in writing is given to him in that behalf by the

Engineer, or

• Fails to complete the Works or items with individual dates of completion, on or before the

date(s) of completion, and does not complete them within the period specified in a notice

given in writing in that behalf by the Engineer, or

• Shall offer or give or agree to give to any person in Municipal Corporation’s Service or to any

other person on his behalf any gift or consideration of any kind as an inducement or reward

for doing or forbearing to do or for having done or forborne to do any act in relation to the

obtaining or execution of this or any other contract for the Municipal Corporation, or

• Shall obtain a contract with the Municipal Corporation as a result of ring tendering or other

non-bonafide methods of competitive tendering or

• Being an individual or a firm, any partner thereof, shall at any time be adjudged insolvent or

have a receiving order or order for administration of his estate made against him or shall

take any proceedings for liquidation or composition (other than voluntary liquidation for the

purpose of amalgamation or reconstruction) under any insolvency act for the time effects or

force or make any conveyance of assignment of his effects or composition or arrangement

for the benefit of his creditors or purport so to do, or if any application be made under any

Insolvency Act for the time being in force for the sequestration of his estate or if a trust deed

be executed by him for his creditors, or

• Being a company, shall pass a resolution or the court shall make an order for the liquidation

of his affairs, or a receiver or a manager on behalf of the debenture holders shall be

appointed or circumstances shall arise which entitle the Court or debenture holders to

appoint a receiver or a Manager, or

• Shall suffer an execution being levied on his goods and allow it to be continued for a period

of 21 days, or

• Assigns, transfers, sublets (engagement of labour on a piece work basis or labour with

materials not to be incorporated in the work, shall not be deemed to be sub-letting) or

attempts to assign, transfer or sublet the entire works or any portion thereof without the prior

written approval of the Commissioner, the Commissioner may, without prejudice to any other

right or remedy which shall have accrued or shall accrue thereafter to the Municipal

Corporation by written notice cancel the contract as a whole or only such items of work in

default from the contract.

The Commissioner shall on such cancellation have powers to -

• take possession of site and any materials, constructional plant, implements stores, etc.

thereon and / or

• Carry out the incomplete work by any means at the risk and cost of the Contractor.

On cancellation of the contract in full or in part the Engineer shall determine what amount, if

any, is recoverable from the Contractor for completion of works or part of the works or in case

the works or part of works is completed, the loss or damage suffered by the Municipal


Corporation, in determining the amount, credit shall be given to the Contractor for the value of

the work executed by him upto the time of cancellation, the value of the Contractor’s material

taken over and incorporated in the work, and use of construction equipment belonging to the

Contractor.

Any excess expenditure incurred or to be incurred by the Municipal Corporation in completing

the works or part of the works or excess loss or damages suffered or may be suffered by the

Municipal Corporation as aforesaid after allowing such credit shall be recovered from any

money due to the Contractor on any account and if such moneys are not sufficient the

Contractor shall be called upon in writing to pay the same within thirty days. If the Contractor

fails to pay required sum within the aforesaid period of 28 days, the Engineer shall have right to

sell any or all of the Contractor’s unused materials, constructional plant, implements, temporary

buildings, etc. and apply the proceeds of sale thereof towards the satisfaction of any sums due

from the Contractor under the contract, and if thereafter there be any balance outstanding from

the Contractor, it shall be recovered in accordance with provision of the contract.

Any sums in excess of the amounts due to the Municipal Corporation and unsold materials

constructional plant, etc. shall be returned to the Contractor, provided always that if cost or

anticipated cost of completion by the Municipal Corporation of the works or part of the works is

less than the amount of which the Contractor would have been paid had he completed the

works or part of the works, benefit shall not accrue to the Contractor.

Without prejudice to the generally of the foregoing, the amount deposited by the Contractor as

security deposit shall be absolutely aforesaid to the Corporation for such failure, or breach or

determination of contract.

13 h) Frauds and Corrupt Practices:

The Contractor and their respective officers, employees, agents and advisers shall observe the

highest standard of ethics during the execution of the works until the settlement of final bill.

Notwithstanding anything to the contrary contained herein, the Employer may terminate

aContractor without being liable in any manner whatsoever to the Contractor if it determines that

the Contractor has, directly or indirectly or through an agent, engaged in corrupt practice,

fraudulent practice, coercive practice or undesirable practice during the works execution.

Without prejudice to the rights of the Employer under Clause 13 (h) hereinabove, if aContractor

is found by the Employer to have directly or indirectly or through an agent, engaged or indulged

in any corrupt practice, fraudulent practice, coercive practice or undesirable practice during the

execution of Works, such Contractor shall not be eligible to participate in any tender or RFQ

issued by the Employer during a period of 10 (ten) years from the date such Contractor is found

by the Employer to have directly or indirectly or through an agent, engaged or indulged in any

corrupt practice, fraudulent practice, coercive practice or undesirable practice, as the case may

be.

• corrupt practice” means the offering, giving, receiving, or soliciting, directly or indirectly,

of anything of value to influence the actions of any person connected with the Works (for

avoidance of doubt, offering of employment to, or employing, or engaging in any manner

whatsoever, directly or indirectly, any representative of the Employer who is or has been


associated in any manner, directly or indirectly, with the Works or before or after the

execution thereof, at any time prior to the expiry of one year from the date such official

resigns or retires from or otherwise ceases to be in the service of the Employer, shall be

deemed to constitute influencing the actions of a person connected with the Works.

• “fraudulent practice” means a misrepresentation or omission of facts or suppression of

facts or disclosure of incomplete facts, in order to influence the Works ;

• “coercive practice” means impairing or harming or threatening to impair or harm, directly

or indirectly, any person or property to influence any person’s participation or action in the

Works.

14. Notices

14 a) Instructions and notices:

Subject as otherwise provided in this contract all notice to be given on behalf of the Municipal

Corporation and all other actions to be taken on its behalf may be given or taken by the

Engineer or any officer for the time being entrusted with the functions, duties and powers of the

Engineer.

All instructions notices and communications etc. under the contract shall be given in writing and

if sent by registered post to the last known place or abode or business of the Contractor shall be

deemed to have been served on the date when in the ordinary course of post these would have

been served on or delivered to him.

The Contractor or his agent shall be in attendance at the site(s) during all working hours and

shall supervise the execution of the works with such additional assistance in each trade as the

Engineer may consider necessary. Orders given to the Contractor’s agent shall be considered

to have the same force as if they had been given to the Contractor himself.

The Engineer shall communicate or confirm his instruction to the Contractor in respect of the

execution of work in a ‘Works site order Book’ maintained in the office of the Engineer and the

Contractor or his authorized representative shall confirm receipt of such instructions by signing

the relevant entries in this book. If required by the Contractor he shall be furnished a certified

true copy of such instruction(s).

If the Contractor fails to comply with the instruction(s) of the Engineer, the Engineer may impose

the penalty of Rs.5000/- (Rupees Five Thousand) or equivalent cost for re-doing the faulty work,

whichever is more, for each of such defaults. This penalty will not prejudice the right of the

Municipal Commissioner or the Engineer to claim compensation.

14.b)Notices to Local Bodies :


The Contractor shall comply with and give all displays required under any Governmental

authority, instrument, rule or order made under any Act of Parliament, State Laws or any

regulation or Bye-laws of any local authority or public utility concern relating to works. He shall

before making any variation from the contract drawings necessitated by such compliance give to

the Engineer a notice given reasons for the proposed variations and obtain the Engineer’s

instructions thereon. The Contractor shall pay and indemnify the Municipal Corporation against

any liability in respect of any fees or charges payable under Act of Parliament, State Laws or

any Governmental Instrument, Rule or Order and any Regulations or Bye-laws of any local

authority or public utility concern in respect of the works.

15 PENAL ACTION

15.1 PENALTIES

In addition to any penal action under general conditions of individual contracts, a

contractor/s may be liable under these Rules to one or more of the following penalties:

a. Warning (7.1.1)

b. Fine (7.1.1)

c. Demotion (7.1.2)

d. Banning / De-registration (7.1.3.)

e. Suspension of Registration pending inquiry (7.1.4)

f. Debarring (7.1.5)

15.1.1. WARNING / FINE

A contractor/s will be liable to a warning and / or fine for -

a. Non-compliance of any provision of these rules,

b. Failure to comply with any clause or direction under these Rules or failure to comply with any condition of tenders / contracts and

c. Inadequate progress / performance under a contract.

For the first default of any type mentioned above, a warning letter/notice will be issued.

For each subsequent default of the types in (a), (b) & (c) above, the minimum penalty will

be imposed to the contractor as per the penalties mentioned in the contract document

under general condition of contract or special condition of contract. Higher amount of fine

may be levied by the competent authority i.e. defined under Engineer of the Project, for

the reasons to be recorded.

15.1.2 DEMOTION

A contractor/s is liable to be demoted to any of the lower classes of registration on one or more of the following grounds -

a. Specific failure or default in execution of individual works, in respect of physical


progress or quality in such works,

b. Deterioration in financial or technical ability / capacity and

c. Repeated failure to properly fill in tender document/s, fully and correctly or delay in execution of formal contract documents

Note: Demotion from the lowest class of registration will amount to banning/de-registration of registration for the period specified. In such cases, the registration of the contractor/s will stand restored after the period of demotion/banning/de-registration.

15.1.3 BANNING - DE-REGISTRATION

Banning / Deregistration will be for a specific period or permanent banning / Deregistration.

A contractor/s is liable to be Banned / De-registered on one or more of the following grounds: -

a) If security considerations including question of loyalty to the MCGM so warrant,

b) If the proprietor of the firm, its employee, partner or representative is convicted

by a court of law following of investigation or under normal process of law for offences

involving moral turpitude in relation to business dealings viz. Conviction by court of law,

c) If there is strong justification for believing that the proprietor or employee, or

representative of the firm has been guilty of malpractices such as bribery,

corruption, fraud substitution of tenders, interpolation, misrepresentation, evasion or

habitual default in payment of any tax levied by law,

d) If the firm continuously refuses to return MCGM or State Govt. dues without showing

adequate cause, and MCGM is satisfied that this is not due to a reasonable

dispute which would attract proceedings in arbitration or court of law,

e) If the firm employs a MCGM or State Govt. servant, dismissed/removed on account of

corruption, or employs a non-official convicted for an offence involving corruption or

abetment of such an offence, in a position where he could corrupt Govt. Servants,

f) Persistent and intentional violation of important conditions of contract. Not attaining

required quality of work and non-execution of works as per terms and conditions of

contract. Constant non-achievement of milestone on insufficient and imaginary grounds

and non-adherence to quality specifications despite being pointed out,

g) An attempt to cheat MCGM , an attempt to secure a contract through unfair means or

bringing to bear outside influence, an attempt to secure unauthorized copies of Municipal

records and documents in relation to any tender / contract or any other official matter, an

attempt to tamper with Municipal record and documents, threatening, misbehaving with

or physical attack on any Municipal employee/ Officer,

h) An attempt to instigate or collude with other contractor/s with a view to securing undue

advantage,

i) Any of the grounds mentioned in clause Demotion, if it is deemed serious enough

15.1.4 SUSPENSION OF REGISTRATION PENDING INQUIRY

Whenever any Show Cause Notice is issued to the contractor/s calling for the

explanation on the alleged lapses by him, the registration of contractor/s may be banned

/ suspended up to the arrival of final outcome of the said Show cause notice, depending


on the seriousness of the reasons for which show cause notice is issued. Show cause

notice shall be issued by the officer not below the rank of Executive Engineer in charge

of the concerned work / project of MCGM. Director (E. S. & P.) or concerned Deputy

Municipal Commissioner is the competent authority to ban / suspend the registration

pending inquiry in such cases. Circular of Banning / suspension of registration till further

orders shall be circulated to all departments of MCGM by Head of the executing

department i.e. Chief Engineer of concerned department / Assistant Commissioner of

the concerned Ward.

The registration of the contractor/s will be restored depending on the final outcome of the

process of the said Show Cause Notice and circular to that effect shall be issued by

concerned Head of the Department

15.1.5 DEBARRING

Debarring is the penal action to be initiated against the Contractors who are carrying out works for M.C.G.M. and are not registered with M.C.GM. All other criteria and procedure of penal action (i.e. observed for suspension, banning, demotion, deregistration) will remain similar as mentioned in penal action clause 7.

15.2 AUTHORITY

15.2.1 On the basis of reports received, concerned Chief Engineer (including City / Hydraulic

Engineer) in case of central agencies and Assistant Commissioner in case of Ward

Offices of MCGM will be competent, either suo-motu or, to issue warning and/or impose

fine and order of demotion to contractor/s. The power to issue warning or impose any fine

can also be exercised by the Executive Engineer concerned in-charge of construction in

accordance with General Contract Condition specified in tender.

15.2.2 On the basis of report/s received from concerned Chief Engineer or Assistant Commissioner, the Director (E.S. & P.) or concerned Deputy Municipal Commissioner will be competent, either suo-motu, or to impose any of the penalties mentioned in clause 7.1 on the contractor/s.

15.2.3 On the basis of report/s, the Municipal Commissioner or any of the Additional Municipal Commissioners will be competent, either suo-motu, or to impose any of the penalties mentioned in clause 7.1 on the contractor/s.

15.3 PROCESS

15.3.1 Before initiating action for demotion / banning / suspension / de-registration, the

competent authority not below the rank of Executive Engineer in charge of the concerned

work/project of MCGM, shall issue a Show Cause Notice to the contractor/s, as to why

penal action should not be taken against the said contractor/s. The notice period shall not

be less than 15 days and shall be counted from the date of receipt of the notice by the

contractor/s and can be extended, for adequate reasons (to be recorded), by the officer

who issued the said notice, up to a period of 30 days (including the initial period).


15.3.2 If the contractor/s fails to give satisfactory clarification within the period stipulated in the

show cause notice (or, the extended period, if any), the concerned Chief Engineer /

Assistant Commissioner shall either take a final decision regarding the demotion with

specific time period or permanently or make detailed report with recommendations for

suspension / banning / de-registration to the Director (E. S. & P.) or concerned Deputy

Municipal Commissioner / Additional Municipal Commissioner / Municipal

Commissioner. Before issuing a final order regarding demotion, the Chief Engineer /

Assistant Commissioner shall give personal hearing to contractor/s or his/their

authorized representative on his request in writing, along with his/their letter of

clarification.

15.3.3 The competent authority i.e. Dir. (E. S. & P.) / concerned Deputy Municipal

Commissioner / A.M.C. / Municipal Commissioner, shall give personal hearing to

contractor/s or his/their authorized representative on his request in writing along with

his/their letter of clarification, before taking final decision on banning / de-registration of

the contractor/s with specific time period or permanently.

15.3.4 As far as practicable, the competent authority i.e. Chief Engineer / Assistant

Commissioner of that concerned department or Dir. (E.S. & P.) / concerned Deputy

Municipal Commissioner / A.M.C. / Municipal Commissioner, shall take final decision

regarding demotion / banning / de-registration within 15 days of completion of hearing of

the contractor/s.

15.3.5 Any order of penalty passed by the competent authority i.e. Chief Engineer / Assistant Commissioner of that concerned department or Dir. (E. S. & P.) / concerned Deputy Municipal Commissioner / A.M.C. / Municipal Commissioner, under these Rules shall state the facts of the case and record the reasons for the order. In case of, suspension / banning and de-registration, the order shall also specify the name(s) of the proprietor / partner(s) / directors / power of attorney holder of the contractor/s firm/ partnership / company as well as the period of demotion / suspension / banning / de-registration in his/their order, and shall intimate the contractor/s accordingly. A circular to that effect shall be issued to all departments of MCGM by the executing department who has initiated the action.

15.3.6 The decision regarding demotion / banning / de-registration shall be communicated to

contractor/s immediately with directions to submit the original registration certificate to the

Monitoring & Registration Cell within 15 days from the date of receipt of the order

regarding demotion / banning / de-registration, for taking necessary endorsement on the

same. If any contractor/s does not comply with this requirement within the period of 15

days mentioned above, He / they shall be deemed to have been de-registered

automatically at the expiry of the above mentioned period, even if the penalty imposed

was demotion/banning/suspension for a specific period.

15.4 APPEALATE AUTHORITIES FOR PENAL ACTION

a. In case of Demotion Director(E.S. & P.) or concerned Deputy Municipal Commissioner is the authority and,

b. In case of banning/de-registration Additional Municipal Commissioner / Municipal Commissioner are the final authorities


15.5 REVOCATION OF ORDER / RESTORATION OF REGISTRATION

The Suspended / Banned / Demoted / contractor/s shall be restored to the Original Class under which contractor/s was originally registered or as per the sanction of the competent authority subject to following;

a. An order for suspension/banning/demotion/deregistration passed for a certain specified period shall be deemed to have been automatically revoked on the expiry of that specified period and it will not be necessary to issue a specific formal order of revocation, except that an order of suspension/banning/demotion/ deregistration passed on account of doubtful loyalty or security consideration shall continue to remain in force until it is specifically revoked.

OR

b. An order of suspension/banning/demotion/deregistration for reasons mentioned at aforesaid para may be revoked if, in respect of the same facts, the accused has been wholly exonerated by a court of law.

Circular regarding restoration shall be circulated to all departments of MCGM by Head of the executing department i.e. Chief Engineer of concerned department / Assistant Commissioner of the concerned Ward.

15.6 REVIEW

The appellate Authorities may, on representation or appeals from the firms or even

otherwise review suspension/banning/demotion/deregistration orders.

15.7 EFFECT OF BANNING / SUSPENSION / DE-REGISTRATION

15.7.1 Once the order of banning / suspension / deregistration is issued, he will not be allowed to participate in any future tender process and if the contractor has already participated in tender process the bid shall be terminated at the instant stage. In case the order of banning/ suspension / deregistration is issued after the proposal is tabled before Standing Committee, the banning / suspension / deregistration order should be communicated to the Standing Committee by making a statement and the DL to MS will be withdrawn.

No contract of any kind whatsoever shall be placed with a banned / suspended / deregistered firm, including its allied firms by all Departments/offices of the MCGM after the issue of a banning order. Contracts concluded before the issue of the banning / suspension / deregistration order shall, however, not be affected by the banning / suspension / deregistration order. Contracts concluded shall mean the date of issuance of ‘Letter of Acceptance’.

Even after banning / suspension / deregistration, the agency will be allowed to complete his other on-going works, unless otherwise rescinded by competent authority on grounds of breach of conditions of contract.

15.7.2 If registered contractor/s (a firm partnership or company) is de-registered/banned/ suspended, then any other registered contractor/s (a firm, partnership or company), with any partner or power of attorney holder who is also a partner or power of attorney holder of such partner or power of attorney holder of the de-registered/banned/ suspended contractor/s, shall also stand automatically de-registered/banned/ suspended,


15.7.3 Demotion / Banning / Suspension / Deregistration order passed in respect of a firm shall be extended to all its allied firms (see definition for details)

15.7.4 Proprietor / Partner/s / Director/s / Power of Attorney Holder/s of banned/suspended / deregistered firm shall not be allowed in Joint Ventures.

15.7.5 Demotion shall be restricted to one class immediately below the existing class of registration. Demotion from the lowest class of registration will amount to suspension of registration for the period specified

15.7.6 The Demotion / Banning / De-registration shall apply permanently or for the period specified in the order of Demotion / Banning / De-registration as per the sanction of competent authority i.e. Chief Engineer of that concerned department/ or Dir. (E.S. & P.) / concerned D.M.C. / A.M.C. / Municipal Commissioner, obtained by the executing department/s initiating the action.

15.7.7 De-registered/banned/suspended contractor/s, registered with MCGM in any class shall not be entitled to be issued any tender document/s or quotation/s for any MCGM works in any class during the period of De-registration/Banning/suspension. Further for bids in process, the contractor/s will not be considered for award of works /Contract in any class, even if the said de-registered/banned/suspended contractor/s is having registration of any other Govt. / Semi Govt. agency such as PWD/ CPWD /MJP / MHADA/MES/CIDCO etc. in any class. MCGM reserves the right to terminate the work in case of such default.

15.7.8 Demoted contractor/s, registered with MCGM in any class shall not be entitled to be issued any tender document/s or quotation/s for any MCGM works in any upper class during the period of Demotion even if, the said demoted contractor/s is having registration in any upper class from any other Govt. / Semi Govt. agency such as PWD/CPWD/MJP/MHADA / MES/ CIDCO etc. Further for bids in process, the contractor/s will not be considered for award of works / Contract in any upper class in such cases. MCGM reserves the right to terminate the work in case of such default.

15.7.8 Debarred Contractor/s (in case of Firms with outside registration) and/or contractors who are penalized by any other Govt. / Semi Govt. agency such as PWD/CPWD/MJP/MHADA/MES/CIDCO etc. shall not be entitled to be issued any tender document/s or quotation/s for any MCGM works in any class during the period of debarring. Further for bids in process, the contractor/s will not be considered for award of Works/Contract in any class, even if the said blacklisted contractor/s is having registration of MCGM or any other Govt. / Semi Govt. agency such as PWD/CPWD/MJP/MHADA/MES/CIDCO etc. in any class.

15.8 Payment upon banning / suspension / deregistration of firm

If the Contractual agency is banned / suspended / deregistered for the appropriate reasons

because of a fundamental breach of Contract by the Contractor, the Engineer shall issue a

certificate for value of the work done and materials ordered. Any excess expenditure

incurred or to be incurred by the Municipal Corporation in completing the works or part of

the works or excess loss or damages suffered or may be suffered by the Municipal

Corporation due to sub-standard work shall be recovered from any money due to the

Contractor on any account and if such moneys are not sufficient the Contractor shall be

called upon in writing to pay the same within thirty days. If the Contractor fails to pay

required sum within the aforesaid period of 30 days, the Engineer shall have right to sell


any or all of the Contractor’s unused materials, constructional plant, implements, temporary

buildings, etc. and apply the proceeds of sale thereof towards the satisfaction of any sums

due from the Contractor under the contract, and if thereafter there be any balance

outstanding from the Contractor, it shall be recovered in accordance with provision of the

contract.

Any sums in excess of the amounts due to the Municipal Corporation and unsold materials constructional plant, etc. shall be returned to the Contractor, provided always that if cost or anticipated cost of completion by the Municipal Corporation of the works or part of the works is less than the amount of which the Contractor would have been paid had he completed the works or part of the works, benefit shall not accrue to the Contractor.

15.9 REFUND OF FEES

Demoted / banned / suspended or de-registered contractor/s shall not be entitled for refund of Registration / Up-gradation / Renewal fees.

15.10 RENEWAL FOR DEMOTED CONTRACTORS

The renewal of demoted contractor/s shall be processed for original class and the penal

action of demotion will continue till the specified period.

In case the validity of the suspended contractor/s falls in suspended period, the validity will

be renewed after completion of suspension period, in continuation of validity of his

registration without charging the penalty prescribed for renewal.


SECTION B: Safety Health & Environment

CONTRACTOR’S HEALTH, SAFETY & ENVIRONMENT PROGRAMME

1. SAFETY ORGANISATION

1.1. SHE Policy

The Contractor shall have a written health, safety and environment policy issued by the

Chief Executive of the Organization, appropriate to the scale and nature of the risks

involved in the contract works. A copy of the Policy shall be made available to the

Employer at the time of contract in evidence of Contractor’s commitment to management

of employee's health and safety and compliance to Statutory and regulatory

requirements. All Contractors’ employees shall be familiar with the Safety Policy and

their role and obligations in its implementation. The Policy shall meet the relevant

statutory and regulatory requirements and the requirements of the Employer. The Policy

shall periodically be reviewed for updating with respect to new and emerging legal and

other requirements. SHE policy should focus and present well defined SHE objectives

and targets.

1.2 Site specific SHE Plan / Procedures / Forms & Documents

Contractor will have to prepare & get SHE plan approved from the Employer’s

representative. Contractor will work as per OHSAS guidelines. Contractor can use

Forms available with client’s representative to show documentary evidence of

compliance.

1.3 Safety Representative

a) The Contractor shall appoint a Safety Representative (SR) meeting statutory

competence requirements, with a minimum experience of five years of safety

management in comparable contracts, approved by the Employer on the basis of

his qualification [DIS] and experience & shall have hands-on experience on OHSAS

18000 & Environment Management System (EMS). Safety Head of Client’s

representative can disqualify the SR if found unsuitable. The SR shall give his

whole time to the superintendence of the Health and Safety Programme of the

Contractor.

b) The Contractor shall also nominate in writing competent Safety Appointees from

different disciplines to assist SR in implementation of health and safety measures in


their routine contract works. The SR shall have sufficient authority to direct

Contractor's or his Subcontractor's personnel to meet health and safety

requirements and to stop performance of work until such requirements are met.

1.4 Employee consultations, Safety Committee and communication

a) The Contractor shall ensure full involvement of all his employees recognizing their

right to consultation on health and safety matters. The Safety Appointees of the

various areas, in conjunction with the SR shall be responsible for ensuring

employees' involvement through routine safety inspections, hazard and risk

assessment in new and changed works and their control. Contractor shall maintain

appropriate operating procedures to guide these requirements. Contractor shall

plan, maintain and implement annual training calendar/matrix for periodical SHE

Induction & Training programs for all working level personnel.

b) The Contractor shall also appoint a Safety Committee (SC) comprising of Safety

Appointees from the various areas under the chairmanship of the Contractor’s

Project In charge .The committee shall meet at periodic intervals minimum monthly

to discuss the status and adequacy of the safety management, and any safety

concerns of the employees. The committee shall also formulate and validate the

safety procedures incorporating controls to prevent or mitigate hazards and risks

before submission for approval by Employer / Engineer. The minutes of SC meeting

shall be submitted to the Employer / Engineer. SR shall maintain the records of the

meetings. The frequency of the meetings shall be clearly defined in the SHE

program and minutes of the meetings shall be submitted to Employer.

c) The Contractor shall communicate with the help of Notice board, Posters, Sign

boards to the employees regularly on job hazards applicable to their tasks in hand.

Safety Appointees (SA's or any of SR's nominees.) shall hold 'Toolbox talks' for this

purpose on a routine basis before undertaking any safety critical and /or non-routine

activities. Weekly meetings of the Contractor and his Subcontractor attended by the

SR and SA's shall include safety as a key item in the agenda to discuss hazards

and risk assessments, Job safety analysis, and control procedures and to review

accidents and incidents (Near-miss) for remedial measures to prevent such

occurrence. The minutes of the meeting shall be submitted to the Employer /

Contractor. SR shall maintain the records.

1.5 Contractor's accident / Environmental incident reports

"Accident" for the purpose of this clause is defined as "Undesired event giving rise to

death, ill-health, injury, damage or other loss" and "Incident" is defined as “Event that

gave rise to an accident or had the potential to lead to an accident”. An accident


where no ill health, injury, damage or other loss occurs also referred to as "near-

miss". Incident includes near miss.

The Contractor shall report orally, to Employer and Engineer regardless of their

extent, duration and severity, immediately on occurrence of all accidents resulting in:

a) Personal injury / Dangerous Occurrence,

b) Property damages,

c) Fires,

d) Spills

e) Overflows of septic tanks and

f) near-misses

Contractor shall submit the accident/ incident report in writing to Employer / Engineer

within 24 hours of its happening in the form as prescribed by the governing statute or in

the absence of which, in the form prescribed by the Engineer. Contractor shall detail in

the Accident/Incident report, the particulars of the dangerous occurrence leading to the

accident, lost time of absence due to accident, root cause analysis and the corrective

and preventive actions to prevent such recurrence. In addition, Contractor shall include

his estimate of the impact of accident on project schedule. Incidents shall also be

reported in the same manner identifying root cause/s to eliminate such potential

occurrence or risks

1.6. First -aid personnel and facilities

a) The Contractor shall make available first-aiders, first-aid boxes and or first aid

stations as per statutory requirements. The persons holding current certificates of

competency of recognized institutions in prescribed numbers as per any governing

statute and in the absence of such regulatory requirement a minimum of two first-

aiders for each area of work for every hundred workmen. First-aiders' names shall be

prominently displayed.

b) The first -aid boxes shall display contents of medical and medicinal articles with

quantity maintained, which shall be in accordance with governing statute. Nominated

first-aider shall replenish stock promptly.

The first-aid refresher training shall be provided at least once in a year and all

employees shall be encouraged to undergo first-aid training. A record shall be kept of all

first aid treatments with particulars of treatment and personnel providing the treatment.

1.7 Purchase and Procurement Control

a) The Contractor shall maintain a procedure for control of his purchases to ensure that

all safety requirements are appropriately vetted by the safety personnel during all


stages of procurement including planning of specifications, inspection for acceptance

and commissioning in order that threats to safety are not overlooked and appropriate

attention is paid to the training of personnel in the operation of Contractor's new or

changed machinery and their operation control procedures, to prevent / control risks.

b) Contractor shall exercise due diligence in appointing his subcontractors and

outsourcing contract services, that no new health and safety threats are created.

Contractor shall ensure personnel of subcontractors and outsourced contract

services are competent in health and safety management to meet the Policy

requirements. They shall be made aware of the safety rules, emergency procedures

and any information that will have a bearing on the safety, health and related

contractual obligations

1.8 Hazard Identification and Risk Assessment

Contractor shall ensure that his key personnel and safety personnel are trained to be

competent in hazard identification, risk assessment and risk control processes.

Contractor shall on a routine basis identify, evaluate and control all health and safety

risks especially in the hazardous work activities to validate the previous risk

assessments. Elements such as hazard identification, evaluation of risks with existing

control measures in place and estimate of tolerability of the residual risks shall be an

ongoing process. Any additional/New control measures shall be designed based on this

process on need basis. Contractor shall make sure that specific work related risk

assessment is attached to the permit while taking the permit.

2.0Health and well being of construction workers

The objective is to ensure health and safety of the workersduring construction, with effective

provisions for the basicfacilities of sanitation, drinking water, safety of equipments

ormachinery etc.

Following are the recommendations to be followed:

1. Comply with the safety procedures, norms andguidelines (as applicable) as outlined

in the document Part 7 Constructional practices and safety, 2005,National Building

code of India, Bureau of IndianStandards

2. Provide clean drinking water to all workers

3. Provide adequate number of decentralized latrines andurinals to construction

workers.

4. Guarding all parts of dangerous machinery.

5. Precautions for working on machinery.

6. Maintaining hoists and lifts, lifting machines, chains, ropes, and other lifting tackles

in good condition. Durable and reusable formwork systems to replace timber

formwork and ensure that formwork where used is properly maintained.

7. Ensuring that walking surfaces or boards at height areof sound construction and are

provided with safety railsor belts.

8. Provide protective equipment; helmets etc.


9. Provide adequate measures to prevent fires.

10. Fire extinguishersand buckets of sand to be provided in the fire-pronearea and

elsewhere where ever found necessary.

11. Provide sufficient and suitable light for working duringNighttime.

12. Dangers, health hazards, and measures to protectworkers from materials of

construction, transportation,storage etc.

13. Safety policies of the constructionfirm/division/company.

2.1 Sanitation facilities for construction workers

Sewage generated from the areas occupied by the construction laborers have to be directed

into the existing sewage drain of the area. In case of non availability of the sewer system, an

onsite decentralized treatment system has to be provided.

3.0Water use during construction

3.1Parameters for water quality

Water used shall be clean and reasonably free from injurious quantities of deleterious materials

such as oils, acids, alkalis,salts and microbial growth. Generally, potable water shall be used.

Where water can be shown to contain any sugar or an excess of acid, alkali or salt, that water

should not be used.

3.2 Measures for reducing water demand during construction

To avoid wastage of curing water, following guidelines are to be followed:

1. Curing water should be sprayed on concrete structures; free flow of water should not be

allowed for curing..

2. Concrete structures should be covered with thick cloth/gunny bags and then water

should be sprayed on them. This would avoid water rebound and will ensure unstained

and complete curing.

3. Ponds should be made using cement and sand mortar to avoid water flowing away from

the flat surface whilecuring.

4. Water ponding should be done on all sunken slabs, thiswould also highlight the

importance of having an impervious formwork.

4.0 Construction wastewater management Wastewater generated from the site during the constructioncontains suspended materials,

spillage and washings from thevarious areas which can be hazardous and should not be mixed

with the sewage water or allowed to percolate into the ground. Aseparate drainage should be

provided for the constructionwastewater and collected in a separate basin. The water should

be discharged into the sewage drain after pre treatmentincluding filtration and removal of

contaminants to thestandards prescribed for disposal.


5.0Noise Control

i)No horn shall be used in silence zones or during night time in residential areas except during

public emergency.

ii) Sound emitting construction equipment shall not be used or operated during night time in

residential areas and silence zone.

Area code Category of Area/ Zone Limits of dB(A)Leq

A Industrial Area 75 70

B Commercial Area 65 55

C Residential Area 55 45

D Silence Zone 50 40

Note:-i) Day time shall mean from 6AM to 10 PM

ii) Night time shall mean from 10 PM to 6 AM

iii) Silence Zone is an area comprising not less than 100meters around hospitals,

educational institutes, courts, religious places or any other area declared such by competent

authority.


ANNEXURE-I

Adjustment Formulae

a) Local Currency Component

i. Price adjustment for increase or decrease in the cost due to local labour shall be paid in accordance with the following formula:

0

0)(

100

88

L

LLRIPV i

LL

VL = increase or decrease in the cost of work during the quarter

under consideration due to changes in rates for local

labour

Lo = The Consumer Price Index Numbers (General) for Mumbai

(declared by the Labour Bureau, Government of India) as

on the date 30 days prior to the deadline for submission of

bids

Li = The average Consumer Price Index Numbers (General) for

Mumbai (declared by the Labour Bureau, Government of

India) for the quarter under consideration.

PL = Percentage of local labour component as specified in

Special conditions of contract (SCC).

i. Price adjustment for increase or decrease in the cost of cement procured by the Contractor from a source within India shall be paid in accordance with the following formula:

0

0)(

100

88

C

CCRIPV i

CC

Vc = Increase or decrease in the cost of work during the quarter

under consideration due to changes in the rates for

cement.

Co = The whole sale price index for cement as on the date 30

days prior to the deadline for submission of bids as

published by the Office of the Economic Advisor, Ministry

of Industry, Government of India, New Delhi.

Ci = The average whole sale price index for cement for the

quarter under consideration as by the Office of the

Economic Advisor, Ministry of Industry, Government of

India, New Delhi.

Pc = Percentage of cement as specified in Special conditions of

contract (SCC)


i. Price adjustment for increase or decrease in the cost of reinforcing steel procured by the Contractor from a source within India shall be paid in accordance with the following formula:

0

0)(

100

88

S

SSRIPV i

SS

VS = Increase or decrease in the cost of work during the quarter

under consideration due to changes in the rates for

reinforcing steel.

So = The whole sale price index for steel (Iron & Steel) as on

the date 30 days prior to the deadline for submission of

bids as published by the Office of the Economic Advisor,

Ministry of Industry, Government of India, New Delhi.

Si = The average whole sale price index for steel (Other Iron &

Steel) for the quarter under consideration as published by

the Office of the Economic Advisor, Ministry of Industry,

Government of India, New Delhi.

Ps = Percentage of steel as specified in Special conditions of

contract (SCC)

i. Price adjustment for increase or decrease in cost of other local materials procured by the Contractor shall be paid in accordance with the following formula:

0

0)(

100

88

M

MMRIPV i

MM

VM = Increase or decrease in the cost of work during the quarter

under consideration due to changes in rates for local

materials other than Petroleum Oil & Lubricant.

Mo = The whole sale price index (all commodities) as on the

date 30 days prior to the deadline for submission of bids as



Mi = The average whole sale price index (all commodities) for

the quarter under consideration as published by the Office

of the Economic Advisor, Ministry of Industry, Government

of India, New Delhi.

Pm = Percentage of local material component as specified in Special conditions of contract (SCC).

i. Price adjustment for increase or decrease in cost of fuel and lubricants procured by the Contractor from a source within India shall be paid in accordance with the following formula:


0

0)(

100

88

F

FFRIPV i

FF

VF = Increase or decrease in the cost of work during the quarter

under consideration due to changes in rates for fuels and

lubricants.

Fo = The retail price of High Speed Diesel (HSD) at the existing consumer pumps of Indian Oil Corporation (IOC) at Mumbai as on the date 30 days prior to the deadline for submission of bids.

Fi = The retail price of HSD at the existing consumer pumps of

IOC at Mumbai for the 15th day of each calendar month of

quarter under consideration.

PF = Percentage of fuel and lubricants as specified in Special

conditions of contract (SCC). (for the application of this

clause the price of HSD has to be chosen to represent

Fuels and Lubricants group.)

i. Price adjustment for increase or decrease in the cost of steel plates for pipelines procured by the Contractor from a source within India shall be paid in accordance with the following formula:

0

0)(

100

88

P

PPRIPV i

PP

VP = Increase or decrease in the cost of work during the quarter

under consideration due to changes in the rates for steel

plates.

Po = The whole sale price index for Oromild Steel & Tensile Plates as on the date 30 days prior to the deadline for the submission of bids as published by the Office of the Economic Advisor, Ministry of Industry, Government of India, New Delhi.

Pi = The average whole sale price index for Oromild Steel &

Tensile Plates for the quarter under consideration as



PP = Percentage of steel plates component for the Works as

specified Special conditions of contract (SCC).

i. Price adjustment for increase or decrease in the cost of electricity shall be paid or recovered in accordance with the following formula

0

0)(

100

88

E

EERIPV i

EE


VE =Increase or decrease in the cost of work during the quarter

under consideration due to changes in rates for electricity.

Eo = The group-wise index number of industrial production of

electricity as on the date 30 days prior to the deadline for

submission of bids as officially published in monthly RBI

bulletin by Reserve Bank of India

Ei = The group-wise index number of industrial production of

electricity for the quarter under consideration as officially

published in monthly RBI bulletin by Reserve Bank of India

PE = Percentage of electricity component as specified in Special

conditions of contract (SCC)

i. Price adjustment for increase or decrease in the cost of mechanical plant and machinery going into permanent works shall be paid or recovered in accordance with the following formula :

0

0)(

100

88

T

TTRIPV iTT

VT = Increase or decrease in the cost of work during the quarter

under consideration due to changes in price for

mechanical plant and machinery.

To = The wholesale price index of non electrical machinery &

parts as on the date 30 days prior to the deadline for

submission of tenders as published by the office of the

Economic Advisor, Ministry of Industry, Government of

India, New Delhi.


Ti = The average wholesale price index of non electrical

machinery & parts for the quarter under consideration as



PT = Percentage of mechanical plant and machinery component

as specified in Special conditions of contract (SCC)

For extra items of works required to be executed as per Clause 10(a) and 10 (b)

of Conditions of Contract, the escalation will be payable on the basis of formulae

mentioned above by adopting Lo, Co, So, Mo, Fo, Po, Eo, and To prevailing on

the date of first execution of the extra items.

The percentage of various components such as labour, material, fuel and

lubricants to be adopted in the formulae for working out increase or decrease in

cost of work, in case of extra items shall be decided while framing the rate for

extra items on the basis of actuals.